Colombo bourse spun around sharply today as it posted gains for the second time in the New Year, gaining 88.53 index points (+1.41%) in the All Share Price index, to close at 6,349.71. S&P SL20 index closed at 3,293.49, advancing by 52.41 index points or +1.62%. Today marked the highest intraday gain in almost a year.

Among the top positive contributors to the index were Distilleries (closed at LKR 225.10, +4.7%), Lanka Orix Leasing (closed at LKR 77.00, +8.45%) & Ceylon Cold Stores (closed at LKR 426.20, +6.55%). Colombo Land & Development Company was the top negative contributor for the day, although it only depreciated the index by -0.70 points.

A healthy turnover of LKR 987mn reflected both strong retail as well as institutional investor participation. Crossings accounted for 37.8% of total turnover. Four off the floor dealings in John Keels Holdings of 1.6mn shares at prices ranging from LKR 156.90 to LKR 157.00 marked the largest transaction of day, placing the script at the top of the turnover list. 9.4mn shares of Dialog changed hands at LKR 10.40, while 0.2mn shares of Commercial Bank changed hands at LKR 126.00. Accordingly Dialog (LKR 116mn). Ceylon Cold Stores (LKR 51mn), Commercial Bank (LKR 41mn) & Ceylon Grain Elevators (LKR 40mn) were next best contributors to the turnover.

Positive investor sentiments were spread far and wide in today’s trading session as 182 counters gained in price while only 31 declined. 33 counters remained unchanged. However 32 scripts touched 52wk low price levels. Cash map improved from 48% to 69%.

Bairaha Farms released positive interim financial results in excess of a +100% change for the quarter causing the script to appreciate by LKR 14.40 or 9.10% (Closed at LKR 172.70). Earnings for the quarter ending 31st Dec 2015 was LKR 166mn while the comparative quarter in 2014 only posted profits of LKR 13mn.

Owing to the positive interim results of Bairaha Farms, other poultry scripts such as Ceylon Grain Elevators & Three Acre Farms were heavily traded as investors anticipate similar performance from the segment. Further, high investor activity was witnessed in Textured Jersey & John Keels Holdings.

Ceylon Cold Stores posted healthy interim results for the quarter ended 31st Dec 2015, which resulted in the counter to appreciate by LKR 26.20 or 6.55%. The company made a profit of LKR 652mn (+106%YoY) for the quarter. John Keells Holdings, which is the parent company of Ceylon Cold Stores increased by +0.32% to close at LKR 156.80.

Softlogic Finance issued a corporate announcement stating out of USD 4mn unsecured convertible subordinate loan obtained from FMO (Dutch Development Bank), USD 2mn will be converted to ordinary shares of the company at LKR 34.96. Accordingly 8.2mn ordinary shares (13.85% of issued share capital) will be issued to FMO by way or a private placement.

Foreign investors were net buyers for the day with a net foreign inflow of LKR 251mn. Foreign participation increased from 8% to 37%. Net foreign inflows were seen in John Keells Holdings (LKR 141mn), Dialog (LKR 110mn) & Ceylon Cold Stores (LKR 34mn) while new outflows were mainly seen in Commercial Bank (LKR 12mn).

Lanka Securities Research