Colombo equities strengthen the gains on Friday to end the weekly operation on an optimistic note. Benchmark All share price index advanced by 25.06 points or 0.35% to end at 7,105.54 while S&P SL 20 index gained 4.42 points (+0.12%) to end at 3,840.75.

Today’s gains were mainly driven by price appreciations in counters such as Ceylon Tobacco (closed at LKR 965.00, +1.5%), Carson Cumberbatch (closed at LKR 400.00, +1.3%) and Associated Motor Finance (closed at LKR 685.10, +25%).

Daily market turnover was LKR 1.3bn. Several crossings were recorded in John Keells Holdings (4.4mn shares at LKR 170.00 per share), Nestle Lanka (0.02mn shares at LKR 2,125.00 per share) and Distilleries (0.2mn shares at LKR 270.00 per share). Total crossings accounted for 62% of the market turnover.

Further, John Keells Holdings positioned at the top of the turnover list with LKR 768mn followed by Piramal Glass (LKR 58mn), Nestle Lanka (LKR 52mn) and Distilleries (LKR 44mn).

Reflecting the positive sentiments gainers surpassed the losers 117 to 58 while 61 counters remained unchanged. Cash map declined from 56% to 50%. Seven counters dropped to 52wk low prices while only Colombo City Holdings (LKR 780.00) and Associated Motor Finance (LKR 685.10) recorded 52wk high prices.

Thick trades were witnessed in Sinhaputhra Finance voting share & preference share followed by Lanka IOC, Janashakthi Insurance, Ceylon Grain Elevators and Colombo City Holdings.

Foreign investors were net sellers with a net foreign outflow of LKR 32mn. Foreign participation marginally declined from 68% to 64%. Net foreign outflows were seen in John Keells Holdings (LKR 121mn), Distilleries (LKR 42mn) and Lanka Tiles (LKR 3mn) while net foreign inflow was mainly seen in Nestle Lanka (LKR 50mn).

During the week ASI declined by 5.26 points or 0.07% while S&P SL 20 index dropped by 46.39 points or 1.19%. Autodrome (+45%), Nation Lanka Finance (+10%) and Lanka IOC (+9%) were among the top gainers of the week while Mackwoods Energy (-8%), Nawaloka Hospitals (-5%) and Lanka Orix Leasing & Company (-4%) were among the top losers.

The average weekly turnover improved 61% to LKR 1.4bn backed by foreign activity. John Keells Holdings topped the weekly turnover list with LKR 2.0bn followed by Commercial Bank (LKR 986mn) and Chevron Lubricants (LKR 519mn).

The net foreign outflow during the week amounted to LKR 425mn and the foreign activity improved from 39% to 61% of the market turnover. Net foreign outflows were mainly seen in Aitken Spence (LKR 490mn), Commercial Bank (LKR 214mn) and Chevron Lubricants (LKR 99mn) while net foreign inflows were mainly seen in Nations Trust Bank (LKR 264mn) and Nestle Lanka (LKR 60mn). Subsequent to this week net foreign outflow, year-to-date net foreign outflow inclined from LKR 2.5bn to LKR 2.9bn.

Lanka Securities Research