Colombo equities gained ground on Monday, after two days of free fall, as bargain seekers turned bullish on selected stocks. Meanwhile foreign investors drove the turnover to 3-week high today led by purchases in premier blue-chip John Keells Holdings.

In today’s trading session, All share price index gained 47.25 points (+0.67%) to end at 7,047.31 while S&P SL 20 index gained 28.67 points (+0.75%) to end at 3,853.65. Today’s gains were mainly fuelled by counters such as Dialog Axiata (closed at LKR 12.00, +7.1%), Hatton National Bank (closed at LKR 202.00, +3.1%) and Access engineering (closed at LKR 26.70, +4.7%).

Daily market turnover reached LKR 2.4bn, highest since 12th Jan 2015. John Keells Holdings positioned at the top of the turnover list for the second consecutive day with LKR 1.5bn, and contributed 65% of the market turnover. Several crossings were recorded in John Keells Holdings where 1.1mn shares changed hands at a price range of LKR 201.00-202.00. Total crossings accounted for 10% of the market turnover.

John Keells Holdings was the mostly traded stock for the day with a volume of 7.1mn which changed hands in more than 1000 trades. JKH advanced after three days of decline, and reached an intra-day high of 205.00 but closed lower at 203.00 (+1.3%). Further JKH warrant 0022, JKH warrant 0023, Access Engineering and Commercial Bank were among mostly traded counters.

Further, Commercial Bank (LKR 279mn) and People’s Leasing (LKR 100mn) made notable contributions to the turnover.

Gainers offset the losers 129 to 61 while 39 counters remained unchanged. Cash map improved to 53% from 28%. 13 counters reached to 52wk low prices while only Ceylinco Insurance recorded a 52wk high price level. The counter closed at LKR 1,599.90 with a gain of 5.1%.

Foreign investors were net buyers with net inflow of LKR 968mn. Foreign participation for the day was 56%. Net foreign inflows were seen in John Keells Holdings (LKR 823mn), People’s Leasing (LKR 89mn) and Dialog Axiata (LKR 50mn) while net foreign outflow was mainly seen in Commercial Bank (LKR 35mn). Accordingly, the year to date net foreign inflow increased to LKR 908mn.

Meanwhile several companies released their interim financial statements for the December quarter today. Hotel Services (The Kingsbury) recorded a significant profit growth of 2000%+ year on year. Subsequent to the notable results the counter advanced today to close at LKR 16.20, +1.9%. Further CIC Holdings recorded a profit growth of 198%YoY. CIC voting share closed at LKR 67.00 with a gain of 1.5%.

According to the media reports, the cabinet has decided to go ahead with the Port City Project after considering the feasibility study and the environment impact assessment. Further, the draft bill on the National Medicinal Drugs Policy (NMDP) has been approved during the cabinet meeting held today.

Lanka Securities Research