Colombo equity market wrapped the weekly operations on optimistic note as the positive investor sentiment continued for the third consecutive day. All share index rallied to 7,193 mark in the opening hours but failed retain the momentum. Main index managed to bag 5.63 index points (+0.08%) to end at 7,179.00 while 20-scrip S&P SL index advanced by 0.12% (5.01 index points) to close at 4,053.45.

The increase in index was mainly led by price appreciations in Dialog Axiata (closed at LKR 11.50, +1.8%), Finlays Colombo (closed at LKR 300.00, +9.4%) and Singer Sri Lanka (closed at LKR 121.90, +5.1%).

Daily market turnover was LKR 802mn. Seylan Bank non-voting topped the turnover list with LKR 84mn followed by Textured Jersey Lanka (LKR 67mn) and Ceylon Guardian Investments (LKR 53mn) respectively. Surprisingly no crossings were recorded during the session.

Out of 258 counters, 130 advanced, 83 slipped while 45 remained unchanged. Cash map slightly advanced to 57% from 55%. 14 counters managed to reach 52wk high prices while only Expolanka and Singhe Hospitals touched 52wk low prices of LKR 8.50 and LKR 2.30 respectively.

Hemas Holdings rights continued to attract heavy investor preference and counter reached to LKR 10.00 but closed below at LKR 4.70 (+34.3%). Further, Seylan Bank non-voting share witnessed hefty trades and stock reached and closed at a new 52wk high price of LKR 71.10 (+3.0%).

Textured Jersey Lanka attracted heavy investor attention where counter reached to a fresh 52wk high of LKR 27.50 supported by the positive earnings announcement. The counter closed below at LKR 27.30 (+2.3%).

Sanasa Development Bank, Bansei Royal Resort and Vallibel Power witnessed heavy investor trading and both Sanasa Development Bank (LKR 128.00) and Vallibel Power (LKR 9.20) reached 52wk high prices.

Foreign investors were net sellers with a net outflow of LKR 65mn after two consecutive days of inflows. Foreign participation was 18%. Net foreign outflows were seen in Sampath Bank (LKR 31mn), CIC Holdings (LKR 21mn), Hatton National Bank (LKR 10mn) while net foreign inflow was mainly seen in Ceylon Guardian Investments (LKR 43mn).

During the week the main index bagged 49.22 points or 0.69% while S&P SL 20 index advanced by 30.19 points or 0.75%. John Keells Holdings topped the weekly turnover list with LKR 316mn followed by Commercial Bank (LKR 187mn) & Seylan Bank non-voting (LKR 164mn).

Abans Finance, Ramboda Falls, Bansei Royal Resort were among the top gainers of the week while Blue Diamonds (non-voting), Swarnamahal Financial Services, Property Developers were among the top losers of the week. Market PE marginally increased to 13.8x from 13.7x, during the week.

Foreign investors were net buyers for the week with a net inflow of LKR 108mn. Foreign participation was 24%. Net foreign inflows were seen in John Keells Holdings (LKR 149mn), Laugfs Gas (LKR 67mn) and Ceylon Guardian Investments (LKR 43mn) while net foreign outflows were mainly seen in CIC Holdings (LKR 53mn), Sampath Bank (LKR 50mn) and Hatton National Bank (LKR 40mn). Subsequent to the weekly inflows, year-to-date net foreign inflow increased to LKR 3.7bn.

During the month of April, core index advanced by 358.66 index points (+5.26%) while S&P SL20 index inclined by 201.02 index points or 5.22%. Foreign investors bought LKR 832mn (-40%MoM) net worth of equities with a foreign participation of 38% (27% in March). Market PE advanced to 13.8x in April compared to 13.1x recorded in March.

According to the data released by Department of census and statistics, the annual average inflation rate further dropped to 2.1% from 2.5% in April. The year-on-year change is 0.1%. Further, rupee continued to depreciate during the week where rupee against the dollar crossed LKR 135.40 mark after 20 months.

Meanwhile at Treasury bill auction, T-Bill yields further dropped where 12M yield declined by 11bps to 6.39% while 3M yield declined by 4bps to 6.15% and 6M yield declined by 3bps to 6.32%. CBSL offered LKR 21bn worth of Treasury bills and the auction was oversubscribed by 3.4 times with bids received amounting to LKR 70.5bn. It was decided to accept LKR 25.4bn.

Market will be on closed Friday (Tomorrow) and Monday due to May day and Poya Holiday.

Lanka Securities Research