Colombo bourse retained the positive momentum gained in previous sessions to conclude the weekly operations with higher returns. Main index gained 10.05 points (+0.15%) to close at 6,918.23 while S&P SL 20 index crossed the 3,800 level to record 3,801.87 with a gain of 11.84 points (+0.31%).  Price progressions in Distilleries (closed at LKR 211.00, +2.9%), DFCC Bank (closed at LKR 175.50, +2.6%) and Vallibel One (closed at LKR 23.10, +2.7%) affected favorably to the index performance.

Daily market turnover crossed the LKR 1bn mark for the fifth consecutive day to record LKR 1.6bn. John Keells Holdings (LKR 174mn) emerged as the top contributor to the market turnover followed by Access Engineering (LKR 129mn) and DIMO (LKR 114mn).

Several negotiated deals were recorded in Seylan Developments (2mn shares at LKR 13.00 per share), Access Engineering (2.3mn shares at LKR 27.50 per share) and Alumex (2mn shares at LKR 14.80 per share). Aggregate value of crossings represented 8% of the market share.

Gainers surpassed the losers 131 to 89, while 57 counters remained unchanged. Cash map inclined to 52% from 38%. 52 counters touched 52wk high prices during the session whereas only Asia Capital and Lucky Lanka Milk Processing touched 52wk low price levels.

Finance sector counters such as Central Investments & Finance, Lanka Orix Finance and Lanka Orix Leasing Company managed to attract attention of investors during the session. Accordingly, banks, finance and insurance sector gained 31% during the week.

Foreign investors were net buyers for the fifth consecutive day with LKR 343mn worth of equities while foreign participation was 19%. Net foreign inflows were seen in counters such as John Keells Holdings (LKR 153mn), Access Engineering (LKR 107mn), National Development Bank (LKR 29mn) while net foreign outflow was mainly seen in Expolanka (LKR 34mn).

Cargills Bank Limited announced that they intend to make a mandatory offer to purchase the remaining shares of Capital Alliance Finance (CALF) from the other shareholders. The terms of the offer will be announced in due course. Subsequent to the acquisition of shares on 5^th and 7^th August 2014, the Cargills Bank holds 73.60% of the total issued ordinary voting shares of CALF.

Lanka Securities Research