Colombo stock market started weekly operations on optimistic note where both indices witnessed notable returns. Core index bagged 26.34 index points or 0.36% to end at 7,353.15 while 20-scrip S&P SL index gained 17.31 index points (+0.42%) to close at 4,104.69. Price inclines in counters such as Commercial Bank (closed at LKR 170.00, +2.5%), Hemas Holdings (closed at LKR 73.50, +5.0%) & Lanka IOC (closed at LKR 53.00, +3.7%) contributed positively to the index performance.

Daily market turnover was LKR 1.7bn. Nations Trust Bank topped the turnover list with LKR 318mn supported by two crossings of 2.6mn shares at LKR 95.00. John Keells Holdings & Commercial Bank were among the next best contributors to the turnover with LKR 296mn & LKR 181mn respectively.

Numerous off-the-floor dealings were recorded in John Keells Holdings (0.6mn shares at LKR 258.00), John Keells Holdings warrant 0023 (0.4mn shares at LKR 78.40) and Commercial Bank (0.4mn shares at LKR 169.00). Aggregate value of the crossings represented 30% of the total turnover.

Subsequent to the release of interim financial statements, Abans Finance attracted heavy investor interest and counter closed at LKR 31.20 (+19.1%). Further, Softlogic Holdings, Lanka IOC & People’s Leasing & Finance were among heavily traded counters.

Following the release of the positive quarter earnings for the June-September quarter, Renuka Agri Foods counter was among the most favored counters of the day. Counter closed at LKR 4.20 (+10.5%).

Meanwhile Sampath Bank announced a debenture issue of 60mn (LKR 100.00 each) to raise LKR 6bn with an option to issue further 10mn debentures.

Out of 271 counters, 145 advanced, 72 declined while 54 counters remained unchanged. Cash map advanced to 56% from 47%. 17 counters reached 52wk high prices while 6 counters touched 52wk low price levels.

Most of the high capped hotel counters such as Aitken Spence Hotel Holdings (closed at LKR 84.90, +0.4%), Asian Hotels & Properties (closed at LKR 70.10, +0.1%), Trans Asia Hotels (closed at LKR 99.90, +1.5%) & John Keells Hotels (closed at LKR 18.00, +1.7%) advanced during the session.

Subsequent to the announcement of the acquisition of Millers Brewery by Lion Brewery from Cargills (Ceylon), Lion Brewery counter advanced by 1.3% to LKR 624.00.

Meanwhile, Commercial Bank counter reached & closed at 52wk high price level of LKR 170.00 (+2.5%) following to the announcement of first interim dividend of LKR 1.50 per share.

Foreign investors closed the day as net buyers for the fifth consecutive day with net inflow of LKR 477mn worth of equities. Foreign participation was 22%. Net foreign inflows were seen in counters such as John Keells Holdings (LKR 276mn), Commercial Bank (LKR 174mn), Distilleries (LKR 43mn) while net foreign outflows were seen in both John Keells Holdings warrant 0023 (LKR 38mn) & warrant 0022 (LKR 14mn) respectively.

Lanka Securities Research