Colombo stocks wrap weekly operations on a mixed note

May, 22, 2015

Colombo equities wrapped the weekly operations on a mixed note amid the positive earnings and dividend announcements. Main index advanced to 7,294 mark in the opening hours but failed to maintain the momentum. All share index gained 15.05 index points (+0.21%) to close at 7,288.74 while S&P SL20 index shed 1.49 index points or 0.04% to end at 4,067.14.

Price inclines in Ceylon Beverages Holdings (closed at LKR 950.00, +11.8%) and Hayleys (closed at LKR 348.00, +4.2%) contributed positively to the main index performance while price depreciations in John Keells Holdings (closed at LKR 201.90, -1.0%) and Commercial Leasing & Finance (closed at LKR 4.30, -2.3%) dragged 20-scrip S&P SL index to red zone.

Daily market turnover failed to reach LKR 1bn mark after 8 consecutive sessions and recorded a turnover of LKR 906mn. Seylan Bank non-voting topped the turnover list with LKR 101mn followed by Nestle Lanka (LKR 65mn) & Dialog Axiata (LKR 55mn). Single crossing was recorded in Nestle Lanka (0.02mn shares at LKR 2,205.00) and accounted for 4% of the total turnover.

Out of 266 counters, 120 advanced, 86 declined while 55 counters remained changed. Cash map declined to 52% from 56%. 25 stocks managed to reach 52wk high prices while 6 stocks touched 52wk low price levels.

Industrial sector counters such as Alufab and Alumex attracted heavy investor preference during the session. Both counters reached 52wk high prices of LKR 45.90 and LKR 18.60 respectively. Alufab counter closed at LKR 45.30 (+17.1%) and Alumex counter closed at LKR 18.30 (+5.2%).

Subsequent to the dividend announcements of Lion Brewery (LION) and Ceylon Beverage Holdings (BREW), counters advanced to LKR 690.00 (+7.0%) and LKR 950.00 (+11.8%) respectively. BREW counter touched 52wk high price of LKR 950.10 during the session. LION declared a dividend of LKR 4.00 per share while BREW announced a dividend of LKR 8.00 per share.

Moreover, LB Finance declared a first and final dividend of LKR 10.00 per share (DY-4.8%) and counter increased to 52wk high price of LKR 214.80. Stock closed below at LKR 208.00 (+3.0%).

Further, Hayleys counter advanced to LKR 350.00 supported by the positive earnings released and dividend announcement of LKR 6.00 per share. Counter closed at LKR 348.00 (+4.2%). Meanwhile 91 listed companies have released their March quarter earnings so far. Following to the interim results released up to now the quarterly earrings witness a growth of 13.6%YoY.

Board of Asian Alliance Insurance has resolved to sub-divide company ordinary shares in the ratio of 01 existing ordinary share into 10 sub-divided ordinary shares.

Banking sector counters such as Seylan Bank voting and non-voting, Sanasa Development Bank and National Development Bank reached fresh 52wk high price levels.

Foreign investors were net sellers with a net foreign outflow of LKR 84mn. Foreign participation was 16%. Net foreign outflows were seen in Dialog Axiata (LKR 51mn), John Keells Holdings (LKR 8mn), People’s Leasing and Finance (LKR 7mn) while net foreign inflow was mainly seen in Tokyo Cement (LKR 5mn).

During the week the main index bagged 30.07 points or +0.41% while S&P SL 20 index advanced by 16.46 points or +0.41%. Commercial Credit & Finance topped the weekly turnover list with LKR 460mn followed by Seylan Bank (LKR 443mn) and Sampath Bank (LKR 414mn).

Bimputh Finance, Alufab and Ceylon Grain Elevators were among top gainers for the week whilst Lanka IOC, Madulsima Plantations and Chilaw Finance were among top losers for the week.

Foreign investors were net buyers for the week with a net foreign inflow of LKR 96mn. Foreign participation was 18%. Net foreign inflows were seen in Distilleries (LKR 247mn), Hatton National Bank non-voting (LKR 64mn), Tokyo Cement non-voting (LKR 50mn) while net foreign outflows were seen in National Development Bank (LKR 102mn), DFCC Bank (LKR 66mn) and John Keells Holdings (LKR 48mn). Subsequent to the weekly inflows, year-to-date net foreign inflow improved to LKR 5.9bn.

Meanwhile at the Treasury bill auction, T-Bill yields further dropped where 6M yield declined by 3bps to 6.19% and 3M yield declined by 2bps to 6.08% while 12M yield unvaried at 6.31%. CBSL offered LKR 20bn worth of Treasury bills and the auction was oversubscribed by 3.2 times with bids received amounting to LKR 63.9bn. It was decided to accept LKR 28.3bn.

Lanka Securities Research

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