Stock Market Review – 02nd September 2014

September, 2, 2014

Colombo shares lengthen the losses on Tuesday to close in negative territory. ASI started the month of September on losses yesterday after the significant gain of 220.19 points in August. Core index declined by 6.07 points (-0.09%) today to end at 7,024.82 while 20-script S&P SL 20 index marginally lost 2.89 points (-0.07%) to end at 3,874.50.

The losses were mainly led by price depreciations in counters such as John Keells Holdings (closed at LKR 248.00, -0.6%), Dialog Axiata (closed at LKR 11.20, -0.9%) and Sri Lanka Telecom (closed at LKR 54.00, -0.4%).

Daily market turnover reached LKR 1.1bn with the support of two negotiated deal recorded in Sinhaputhra Finance where approx. 1.6mn shares (25% of issued capital) changed hands at LKR 275.00 per share. The crossing represented 40% of the total market turnover.

Accordingly Sinhaputhra Finance emerged as the top contributor to the market turnover with LKR 436mn followed by Seylan Bank non-voting (LKR 49mn) and Union Bank (LKR 43mn).

Out of 270 traded counters, 93 counters advanced, 119 counters slipped while 58 counters remained unvaried. Cash map declined to 51% from 60%. During the session, 16 counters reached 52wk high prices while Lucky Lanka Milk Processing Company non-voting share fell to a 52wk low price level.

Meanwhile finance sector counters such as Commercial Credit, Seylan Bank non-voting and First Capital Holdings managed attract heavy investor interest during the session.

Foreign investors were net buyers with a net inflow LKR 21mn worth of equities. Foreign participation was 6%. Net foreign inflows were seen in Pan Asia Bank (LKR 20mn), National Development Bank (LKR 14mn) and Lanka IOC (LKR 6mn) while net outflow was mainly seen in Ascot Holdings (LKR 17mn).

Meanwhile, People’s Leasing & Finance Company will issue 30mn senior unsecured redeemable rated debentures at an issue price of LKR 100.00 each to raise LKR 3bn in total.

Further F L C Hydro Power declared an interim dividend of LKR 0.10 per share.

Lanka Securities Research