Colombo stock market end on positive note as core index witnessed second best gain recorded in a single session during the year. Investors were optimistic on equities during the day amid decreasing yields in fixed income securities. ASI gained 74.92 index points or 1.1% to end at 6,908.18 while 20-scrip S&P SL index gained 37.24 index points or 1.0% to close at 3,790.03. Price appreciations in equities such as Ceylon Tobacco (closed at LKR 1,158.00, +2.4%), John Keells Holdings (closed at LKR 240.00) & Carson Cumberbatch (closed at LKR 470.00, +2.2%) contributed favorably to index performance.

Daily market reached to LKR 2.2bn with support of several off-the-floor dealings recorded in counters such as Janashakthi Insurance (1.5mn shares at LKR 19.00), Access Engineering (1.0mn shares at LKR 27.00), Nations Trust Bank (0.6mn shares at LKR 80.00) & Chevron Lubricants (0.2mn shares at LKR 310.20). Crossing represented 7% of the total turnover.

John Keells Holdings emerged as the top contributor to turnover with LKR 505mn followed by Odel (LKR 138mn) & PC Pharma (LKR 107mn).

Gainers outweighed the losers 166 to 53, while 50 counters remained unchanged. Cash map declined to 38% from 41%. 72 counters reached 52wk high prices during the session and out of 72, 21 equities were financial institution counters.  4 counters touched 52wk low price levels.

Further, debenture issue of DFCC Bank oversubscribed within hours of opening for subscription. DFCC Bank raised LKR 1bn to utilize for the on-going lending activities of the bank.

Moreover, financial sector counters attracted heavy investor interest throughout session. Central Investments & Finance, PC Pharma, Union Bank and Brac Lanka Finance were among heavily traded equities.

Associated Motor Finance declared final dividend of LKR 4.00 per share. Stock closed at LKR 478.00, (+7.4%).

Foreign investors were net buyers with LKR 424mn worth of equities. Foreign participation was 23%. Net foreign inflows were seen in counters such as John Keells Holdings (LKR 480mn), Access Engineering (LKR 47mn), Chevron Lubricants (LKR 17mn) while net outflow was mainly seen in Odel (LKR 103mn).

Central Bank of Sri Lanka announced that public debt of the country reduced by 5% to stand at 74% over the country’s GDP as at end June 2014.

Lanka Securities Research