Stock Market Review – 05th Aug 2014

August, 5, 2014

Colombo equity market ended on a negative note despite non-banking financial segment (NBFI) gaining rapidly due to consolidation process. Core index shed 6.73 index points or 0.10% to end at 6,815.42 while 20-scrip S&P SL index declined by 17.30 index points to close at 3,743.03. Price declines in counters such as Ceylon Tobacco Company (closed at LKR 1,135.50, -1.2%), Lion Brewery (closed at LKR 623.00, -0.5%) & Commercial Bank (closed at LKR 142.50, -0.3%) contributed to the negative index performance.

Daily market turnover was LKR 1.6bn. Capital Alliance Finance topped the turnover (LKR 446mn) with the support of several crossings as the controlling shareholder, Capital Alliance Holdings Limited, divested their the entire stake (68.4%) to Cargills Bank Limited at a price of LKR 15.40-15.50 per share. Distilleries (LKR 173mn) & John Keells Holdings (LKR 113mn) recorded next best contributions for the turnover respectively. Several off-the-floor transactions were recorded in counters such as Distilleries (0.6mn shares at LKR 201.50), Aitken Spence (0.5mn shares at LKR 108.00), Chevron Lubricants (0.2mn shares at LKR 310.00) and Ceylinco Insurance non-voting (0.1mn shares at LKR 520.00). Crossings represented 43% of the total turnover.

Out of 270 traded stocks, 123 counters advanced, 94 counters declined while 53 counters remained unchanged. Cash map declined to 52% from 71%. 33 counters reached 52wk high prices while 4 counters touched to 52wk low price levels.

Further, On’ally Holdings & Senkadagala Finance declared final dividends of LKR 1.70 & LKR 0.80 per share respectively.

Investors gathered around the NBFI sector counters such as Chilaw Finance, Central Investment & Finance, Singer Finance, Vallibel Finance & Multi Finance.

Foreign investors were net buyers with net inflow of LKR 107mn worth of equities. Foreign participation was 20%. Foreign net inflows were seen in counters such as John Keells Holdings (LKR 110mn), Chevron Lubricants (LKR 49mn) & Ceylinco Insurance non-voting (LKR 44mn) while net outflow was mainly seen in Distilleries (LKR 152mn).

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