Colombo shares extended the gains on Friday to wrap the weekly operations in positive territory. Benchmark All Share Price Index gained 55.55 points or 0.76% to end at 7,406.60 while S&P SL 20 index gained 52.95 points or 1.29% to end at 4,160.31. The core index has gained 172.89 points or 2.4% during the week whereas S&P SL index gained 151.89 points or 3.8%. Accordingly, ASI advanced by 154.46 points (+2.1%) and S&P SL 20 index advanced by 122.01 (+3%) so far in the month of October.

The gains were mainly driven by the banking sector counters such as Commercial Bank (closed at LKR 165.50, +3.4%), DFCC Bank (closed at LKR 231.00, +7.3%) and Hatton National Bank (closed at LKR 198.00, +2.3%). Further, positive movements in sectors such as Telecommunications, Health Care and Banks Finance & Insurance affected favorably to the index performance.

Daily market turnover was LKR 4.4bn underpinned by the hefty negotiated deals recorded in Dialog Axiata (132.7mn shares at LKR 12.50 per share) which represented 38% of the total market turnover. Several crossings were recorded in Asiri Hospital Holdings (3.4mn shares at LKR 24.00 per share), Pan Asia Bank (1mn shares at LKR 25.50 per share), Hayleys (0.4mn shares at LKR 360.00 per share), Ceylon Tobacco (0.02mn shares at LKR 1,160.00 per share) and John Keells Holdings (0.4mn shares at LKR 261.90-262.50 per share). Aggregate value of crossings represented 46% of the total market turnover.

Accordingly, Dialog Axiata topped the turnover list with LKR 1.8bn which accounted for 40% of the market turnover. John Keells Holdings (LKR 400mn) and Sampath Bank (LKR 180mn) recorded next best turnovers.

Gainers outweighed the losers 138 to 87 while 54 counters remained unchanged. Cash map inclined to 59% from 56%. 44 counters reached 52wk high prices while Lucky Lanka Milk Processing non-voting and Blue Diamond non-voting touched 52wk low price levels.

Meanwhile shares of Pan Asia Bank, Union Bank and Dankotuwa Porcelain managed to attracted heavy investor attention during the session.

Foreign investors were net buyers with net inflow of LKR 2.3bn. Foreign participation was 35%. Net foreign inflows were seen in Dialog Axiata (LKR 1.7bn), John Keells Holdings (LKR 186mn) and Sampath Bank (LKR 116mn) while net foreign outflow was mainly seen in Tokyo Cement (LKR 22mn). However the foreign investors were net sellers for the week with a net outflow of LKR 949mn due to heavy net outflows in the first two days which amounted to LKR 3.7bn.

During the week net foreign inflow was mainly seen in Dialog Axiata (LKR 1.8bn) whereas net foreign outflow was mainly seen in John Keells Holdings (LKR 3.6bn).

Central Finance announced that the company is planning to acquire shares in Isuru Leasing Company Limited as a part of the Financial Sector Consolidation Process. The purchase price for the offer and acquisition of shares will be calculated based on the net asset value of Isuru Leasing Company.

Pan Asia Bank informed that the CSE has approved the application for listing the 20mn unsecured subordinate redeemable debentures at LKR 100.00 each.

Please note Colombo Bourse will be closed on 06^th October 2014 (next Monday) due to the day being declared as a public and special bank holiday by Ministry of Public Administration & Home Affairs.

Lanka Securities Research