Market Review – 04th Jan 2016

January, 5, 2016

Colombo bourse started the new year with negative returns on Monday as the Benchmark index shed 26.88 index points or 0.39% to end at 6,867.62 while 20-scrip S&P SL index declined by 0.74% (26.81 index points) to close at 3,598.88.

Today’s decline was led by high caps namely Aitken Spence (closed at LKR 93.50, -3.3%), Ceylinco Insurance (closed at LKR 1,415.00, -4.8%) and Asiri Hospital Holdings (closed at LKR 23.00, -4.2%).

Daily market turnover reached 2 week high of LKR 1.1bn. Singer Industries emerged as the top contributor to the turnover with LKR 668mn underpinned by a single off-the-floor dealing where Singer (Sri Lanka) B.V., immediate parent of Singer Industries transferred the equity stake of 3.2mn shares (83.6% equity interest) to Singer Sri Lanka at LKR 206.00.

Commercial Bank (LKR 224mn), John Keells Holdings (LKR 51mn) and Access Engineering (LKR 10mn) were next best contributors to the turnover.

Two crossings were recorded in Commercial Bank (0.7mn shares at LKR 140.00) and John Keells Holdings (0.1mn shares at LKR 178.00). Aggregate value of crossings accounted for 73% of the turnover.

Market breadth was equally divided where out of 224 counters, 83 advanced, 88 declined while 53 remained unchanged. Cash map declined from 68% to 38%. 3 counters advanced to 52wk high prices while 16 counters declined to 52wk low price levels.

High investor activity was witnessed in Commercial Bank, Access Engineering and Singer Industries.

Meanwhile, CT Land Development declared an interim dividend of LKR 1.35 per share and the counter closed flat at LKR 50.00.

Foreign investors were net sellers for the session with a net foreign outflow of LKR 878mn. Foreign participation was 47%. Net foreign outflows were seen in Singer Industries (LKR 556mn) and Commercial Bank (LKR 219mn) while net foreign inflow was mainly seen in Overseas Realty (LKR 5mn).

Lanka Securities Research