Colombo equities continued the winning streak for the sixth consecutive day on Wednesday amid the high institutional & foreign investor activity. Benchmark index advanced to 7,101 mark but closed lower at 7,094.09, up by 10.61 index points or 0.15%. 20-script S&P SL index bagged 12.17 index points (+0.32%) to end at 3,840.00.

However, market breadth was negative where out of 255 counters, 101 declined, 91 advanced while 63 remained unchanged. Cash map advanced from 36% to 43%. 13 scripts declined to 52wk low prices while only 3 scripts managed reach 52wk high price levels.

Premier blue-chip, John Keells Holdings (closed at LKR 180.10, +1.7%) drove the market performance to greener territory along with Nestle Lanka (closed at LKR 2,025.00, +1.2%), Lanka Orix Leasing (closed at LKR 95.70, +0.1%) and Hatton National Bank (closed at LKR 219.00, +0.9%).

Daily market turnover was LKR 1.1bn supported by hefty crossings which accounted for 56% of the total turnover. Off-the-floor dealings were recorded in Commercial Bank (1.6mn shares at LKR 158.00-160.00), Access Engineering (8.6mn shares at LKR 23.00), Textured Jersey (1.5mn shares at LKR 32.70), Hatton National Bank (0.2mn shares at LKR 220.00), Hatton National Bank non-voting (0.3mn shares at LKR 175.00), DFCC Bank (0.2mn shares at LKR 174.00) and Anilana Hotels & Properties (3.6mn shares at LKR 5.50).

Accordingly, Commercial Bank topped the turnover list with LKR 290mn followed by Access Engineering (LKR 225mn), Hatton National Bank (LKR 78mn) and Textured Jersey (LKR 59mn).

Pan Asia Bank stepped to a fresh 52wk high price of LKR 29.50 following the 200%YoY profit growth reported in September quarter. However, stock closed below at LKR 28.80, +1.8%. Meanwhile, Watawala Plantations advanced by 4.3% during the session to close at LKR 24.50 supported by >+300%YoY profit growth in second quarter. Despite the profit incline, LB Finance counter remained unchanged at LKR 124.00.

Hayleys Fibre continued to attract high investor preference and advanced to LKR 88.70 but closed lower at LKR 86.00, +2.6%. Further, Guardian Capital, Radiant Gems and Pan Asia Bank were among heavily traded counters.

Moreover, Royal Ceramic and Bairaha Farms declared interim dividends of LKR 2.00 per share each. Despite the dividend announcement, both counter closed with negative returns. Royal Ceramic closed at LKR 112.00, -3.4% and Bairaha Farms closed at 220.10, -1.2%.

Foreign investors were net sellers after three consecutive days of inflows with a net foreign outflow of LKR 226mn. Foreign participation was 50%. Net foreign outflows were seen in Commercial Bank (LKR 197mn), Hatton National Bank non-voting (LKR 77mn), Sampath Bank (LKR 21mn) while net foreign inflow was mainly seen in Textured Jersey (LKR 57mn).

Meanwhile, at today’s Treasury bill auction, T-bill yields of 3M and 6M dropped by 10bps and 4bps to 6.61% and 6.99% respectively while 12M T-bill yield declined to 7.06%, by 4bps. CBSL offered LKR 23bn worth of Treasury bills today and the auction was oversubscribed by 3.7 times with bids received amounting to LKR 85.6bn. It was decided to accept LKR 23.1bn worth of bills.

Lanka Securities Research