Colombo bourse bounced back on Wednesday where both indices witnessed notable returns amid notable foreign activity. Core index bagged 43.85 index points or 0.61% to end at 7,274.43 while 20-scrip S&P SL index advanced by 41.79 index points or 1.04% to close at 4,066.92. Positive price increases in counters such as John Keells Holdings (closed at LKR 253.60, +3.0%), Dialog Axiata (closed at LKR 13.10, +2.3%) and Sri Lanka Telecom (closed at LKR 48.00, +1.5%) contributed favorably to the index performance.

Daily market turnover reached LKR 1.2bn despite daily trading volume declining to a 4 week low.  John Keells Holdings emerged as the top contributor to the turnover with LKR 481mn underpinned by several crossings of 1.1mn shares at LKR 254.00-255.00. Access Engineering and Sanasa Development Bank were among next best contributors to the turnover with LKR 236mn & LKR 41mn respectively.

Several crossings were recorded in Access Engineering (5.0mn shares at LKR 38.00). Aggregate value of crossings represented 38% of the total turnover.

Out of 244 counters, 130 advanced, 59 slipped and 55 remained unchanged during the session. Cash improved to 59% from 50%. Sierra Cables reached 52wk high price of LKR 4.10 while 4 counters touched 52wk low price levels.

Penny stocks such as Lanka Cement, Sierra Cables and Central Investments & Finance attracted heavy investor preference during the day.

Subsequent to the announcement of interim dividend, Chevron Lubricants counter reached to LKR 360.10 & closed at LKR 360.00 (+2.9%).

Most of the banking sector counters such as Commercial Bank (LKR 168.20, +1.9%), Hatton National Bank (LKR 195.00, +1.6%), DFCC Bank (LKR 216.00, +0.7%), Nation Development Bank (LKR 240.50, +0.3%), Sampath Bank (LKR 233.00, +0.2%), Seylan Bank (LKR 95.80, +5.3%), Nations Trust Bank (LKR 95.10, +0.1%) and Union Bank (LKR 25.00, +1.2%) advanced during the day. Meanwhile prior to the rights trading date, Sanasa Development Bank counter rebound to LKR 102.50 and closed at LKR 100.00 (+6.0%).

Further Singer (Sri Lanka) announced a debenture issue of 10mn (LKR 100.00 each) to raise LKR 1bn with an option to issue further 5mn debentures.

Board of Directors of Tokyo Cement has resolved to amalgamate company’s fully owned subsidiary, Fuji Cement Company (Pvt) Ltd with Tokyo Cement Plc. Tokyo Cement counter closed at LKR 65.00, (+2.9%).

Foreign investors closed as net buyers for 20^th consecutive session with a net inflow of LKR 666mn. Foreign participation was 31%. Net foreign inflows were seen in counters such as John Keells Holdings (LKR 380mn), Access Engineering (LKR 220mn), Commercial Bank (LKR 19mn) while net foreign outflow was mainly seen in Seylan Bank (LKR 6mn).

At today’s weekly primary T-bill auction, 12 month yield declined by 1bps to 5.99% while 6 month yield remained unchanged at 5.84%. 3 month bills were not offered today. Auction was oversubscribed by 2.9 times.

Lanka Securities Research