Colombo equity market started weekly operations on positive note where both counters witnessed marginal returns. Bourse swung between gains and losses on Monday where main index touched 7,209 mark in the opening hours. All share index managed to gain 1.16 index points or 0.02% to end at 7,213.63 while 20-scrip S&P SL index advanced by 2.42 index points (+0.06%) to close at 4,061.04.

Price appreciations in counters such as Distilleries (closed at LKR 278.00, +4.5%), Ceylon Cold Stores (closed at LKR 375.00, +4.2%) and John Keells Hotels (closed at LKR 18.10, +5.2%) contributed positively to index performance.

Daily market turnover was LKR 587mn. John Keells Holdings emerged as the top contributor the total turnover with LKR 137mn underpinned by two crossings of 0.3mn shares at LKR 203.00-204.00. Counter accounted for 23% of the total turnover.

Commercial Bank and Distilleries were next best contributors to the total turnover with LKR 56mn and LKR 34mn respectively.

Losers outweighed gainers 99 to 91, while 52 counters remained unchanged. Cash map advanced to 54% from 44%. 8 counters reached 52wk high prices while only Anilana Hotel Properties touched 52wk low price of LKR 4.90 but managed close higher at LKR 5.00.

Three Acre Farms, Ceylon Grain Elevators and John Keells Hotels attracted heavy investor preference during the session. Subsequent to the release of positive earnings of Piramal Glass, counter advanced to LKR 6.20 but closed at LKR 6.10 (+1.7%).

National Development Bank and DFCC Bank jointly agreed to terminate the memorandum of understanding entered by both parties on the 24th March 2014, relating to the intended amalgamation of DFCC, DVB and NDB, with effect from 11th May 2015. DFCC Bank declined by 0.9% to LKR 218.00 while National Development Bank closed at LKR 270.20 (+0.1%).

Meanwhile Ceylon Cold Stores and Keells Food Products announced final dividends of LKR 6.00 per share and LKR 7.00 per share respectively. Further, Ceylon Tobacco declared final interim dividend of LKR 3.45 per share and counter closed at 1,009.90 (-0.01%).

Beruwala Resorts has entered into a cooperation and marketing services agreement with DER Touristik Koln GmbH of Germany with regard to ‘The Palms’ hotel in Beruwala. Under the agreement the hotel will be rebranded as ‘COOEE The Palms’. Beruwala Resorts stock remained unchanged at LKR 2.00.

Foreign investors continued to be net sellers with a net foreign outflow of LKR 13mn for the sixth consecutive session. Foreign participation was 26%. Net foreign outflows were seen in Commercial Bank (LKR 56mn), Sampath Bank (LKR 12mn), Softlogic Holdings (LKR 2mn) while net foreign inflow was mainly seen in John Keells Holdings (LKR 30mn).

Lanka Securities Research