Colombo bourse wrapped the weekly operations on optimistic note despite the lackluster trading session. Main index managed to record positive gains on Friday snapping the four day losing streak where index advanced by 1.82 points or 0.03% to close at 7,122.73 . S&P SL20 index bagged 18.14 index points (+0.46%) to end at 3,963.68.

Price inclines in heavy cap counters such as John Keells Holdings (closed at LKR 195.00, +2.1%), Bukit Darah (closed at LKR 695.00, +4.5%) and Nestle Lanka (closed at LKR 2,172.90, +1.1%) contributed positively to the index performance.

Daily market turnover recorded a 6-week low of LKR 518mn. Laugfs Gas Holdings non-voting emerged as the top contributor to the turnover with LKR 53mn underpinned by a single crossing of 1.4mn shares at LKR 35.50. Turnover from the counter accounted for 11% of the total turnover.

Hatton National Bank non-voting, John Keells Hotels and Lanka Century Investments were next best contributors to the turnover with LKR 35mn, LKR 32mn and LKR 28mn respectively.

Out of 245 counters, 91 advanced, 91 slipped while 63 counters remained unchanged. Cash map advanced to 65% from 44%. 9 counters touched 52wk low price levels while only Alufab managed reach to 52wk high price of LKR 55.00 (+6.4) but closed lower at LKR 54.00 (+4.5%).

Alufab, Laxapana Batteries & Sinhaputhra Finance were among heavily traded counters. Subsequent to the dividend announcement (LKR 0.25 per share & DY-4.5%) of Laxapana Batteries, counter advanced to LKR 5.50 (+7.8%) but failed to retain the momentum to close at LKR 5.20 (+2.0%).

Following to the positive earnings of Multi Finance, stock advanced to LKR 26.50 (+13.7%) but closed at LKR 24.50 (+5.2%). Company reported a profit growth of 176% (LKR 41.5mn) compared to 4QFY14. Further CT Holdings stock advanced to LKR 135.00 (+3.9%) supported by released positive interim results for 4QFY15.

Further, Muller and Phipps announced a first and final dividend of LKR 0.07 per share (DY-4.7%). Counter closed at LKR 1.50.

Moreover, 5 year debentures issued by Commercial Credit & Finance will be listed on 08th June 2015 in CSE.

Foreign investors were net buyers for the third consecutive session with a net foreign inflow of LKR 23mn. Foreign participation was 20%. Net foreign inflows were mainly seen in Laugfs Gas non-voting (LKR 47mn), Hatton National Bank non-voting (LKR 33mn), Seylan Bank (LKR 14mn) while net foreign outflow was mainly seen in Lanka Century Investments (LKR 25mn).

During the week the main index shed 97.56 points or -1.35% while S&P SL 20 index declined by 36.98 points or -0.92%. John Keells Holdings topped the weekly turnover list with LKR 336mn followed by Commercial Bank (LKR 276mn) and Seylan Bank non-voting (LKR 140mn). Following to the index decline, market PE stood at 13.6x.

Ceylon & Foreign Trades, Eastern Merchants and Alufab were among top gainers for the week whilst FLC Hydro Power, Seylan Bank non-voting and Sanasa Development Bank were among top losers for the week.

Foreign investors were net sellers for the week with a net foreign outflow of LKR 62mn. Foreign participation was 29%. Net foreign outflows were seen in Commercial Bank (LKR 154mn), Lanka Century Investments (LKR 36mn) and Lanka Hospitals (LKR 23mn) while net foreign inflows were seen in Laugfs Gas non-voting (LKR 46mn), Hatton National Bank (LKR 35mn) and Hemas Holdings (LKR 35mn). Subsequent to the weekly outflows, year-to-date net foreign inflow declined to LKR 4.4bn.

Meanwhile at the Treasury bill auction, T-Bill yields remained unchanged where 6M yield and 3M yield remained at 6.18% and 6.07% respectively while 12M yield stood at 6.29%.

Lanka Securities Research