Colombo shares regained the lost ground on Wednesday as both indices closed with positive returns. Benchmark All Share Price index closed at a 34-month high of 6,833.26 with a gain of 17.84 points or 0.26%. S&P SL 20 index gained 9.76 points or 0.26% to end at 3,752.79. Price increases in counters such as Union Assurance (closed at LKR 175.00, +10.8%), John Keells Holdings (closed at LKR 238.00, +0.5%) and Commercial bank (closed at LKR 142.10, +0.4%) contributed positively to the index performance.

Daily market turnover was LKR 1.4bn. Shares of John Keells Holdings and its warrants topped the turnover list today as John Keells Holdings recorded a turnover of LKR 318mn followed by John Keells Holdings Warrant 0023 (LKR 204mn) and John Keells Holdings Warrant 0022 (LKR 184mn). Accordingly Commercial Bank (LKR 84mn) and Textured Jersey (LKR 43mn) recorded next best contributions to the market turnover.

Several negotiated deals were recorded in Commercial Bank (0.3mn shares at LKR 142.00 per share) and John Keells Holdings (0.1mn shares at LKR 237.50 per share). Total crossings accounted for 5% of the market turnover.

Gainers surpassed the losers 158 to 61, while 57 counters remained unchanged. Cash map declined to 41% from 52%.

Meanwhile shares of John Keells Warrant 0023 & 0022, Central Investments & Finance and Softlogic Finance were traded heavily during the session. Further, most of finance sector counters retained the upward moment today as well in line with the consolidation process.

Foreign investors were net buyers with net inflow of LKR 223mn worth of equities. Foreign participation was 19%. Foreign net inflows were seen in counters such as John Keells Holdings (LKR 270mn), Serendib Hotels (LKR 8mn) & People’s Merchant Finance (LKR 4mn) while net outflow was mainly seen in Commercial Bank (LKR 28mn).

At the weekly primary T-bill auction held today, yield on both 3 month and 6 month treasury bills dropped by 8bps to 6.28% and 6.39% respectively whereas 12 month Treasury bill yield dropped by 13bps to 6.45%.

Lanka Securities Research