Colombo stock market continued the optimistic sentiment and started the month of April with hefty returns on Wednesday. Main index bagged 95.74 index points to witness sharp increase of 1.40% to end at 6,916.08 while 20-scrip S&P SL index gained 48.24 index points or 1.25% to close at 3,900.67.

Index performance was mainly led by price appreciations in counters such as Ceylon Tobacco (closed at LKR 1,025.00, +2.6%), Dialog Axiata (closed at LKR 10.90, +4.8%) and Sri Lanka Telecom (closed at LKR 47.50, +4.4%).

Daily market turnover was LKR 617mn. Ceylon Tobacco topped the turnover list with LKR 104mn underpinned by a single crossing of 0.1mn shares at LKR 1,020.00. Citrus Leisure and Dialog Axiata were next contributors to the turnover with LKR 90mn and LKR 81mn respectively. 6.2mn shares of Dialog Axiata changed hands at LKR 10.70 via off-the-floor dealings. Aggregate value of crossings represented 27% of the total turnover.

Out of 234 counters, 155 advanced, 33 slipped while 46 counters remained unchanged. Cash map increased sharply to 75% from 46%. 14 counters touched 52wk low price levels during the session.

Both John Keells Holdings warrants 0022 & 0023 attracted heavy investor preference where both counters advanced simultaneously with the main share. John Keells Holdings closed at LKR 201.30 (+1.0%) while warrant 0022 increased by 9.1% to LKR 22.70 and warrant 0023 inclined to LKR 36.00 (+12.2%).

During the trading session, Lanka Walltiles and Lanka Tiles declared second interim dividends of LKR 2.00 & LKR 2.50 per share respectively. Lanka Walltiles closed at LKR 96.00 (+0.2%) while Lanka Tiles remained unchanged at LKR 106.00.

Further, companies such as Dipped Products, Kegalle Plantations and Richard Pieris Exports announced interim dividends and all three counters closed higher during the day. Dipped Products closed at LKR 140.00 (+1.5%) while Kegalle Plantations inclined by 3.6% to LKR 88.90. Richard Pieris Exports closed at LKR 138.70 (+6.5%).

Access Engineering was most favored counter of the day. Counter closed higher at LKR 20.60 (+7.3%). Meanwhile investment companies such as First Capital Holdings, Dunamis Capital and Entrust Securities were among heavily traded counters.

Following the announcement of cash and scrip dividend of Amaya Leisure, counter advanced to LKR 80.00 but closed below at LKR 79.00 (+10.5%).

XD dates of several banks fell on today and counters such as Commercial Bank (LKR 167.00, +2.0%), Sampath Bank (LKR 246.30, +0.3%), Seylan Bank (LKR 99.00, -1.0%) and National Trust Bank (LKR 99.00, -1.1%) witnessed mixed returns during the session.

Foreign investors positioned as net buyers with a net inflow of LKR 73mn ending the selling streak of seven consecutive sessions. Foreign participation was 31%. Net foreign inflows were seen in Dialog Axiata (LKR 72mn), Nestle Lanka (LKR 28mn), John Keells Holdings warrant 0023 (LKR 5mn) while net foreign outflow was mainly seen in Access Engineering (LKR 16mn).

Lanka Securities Research