Stock Market Review – 08th Dec 2014

December, 8, 2014

Colombo shares started the weekly operation with a lack lasting trading session on Monday, recording a nearly 18-week low turnover of LKR 612mn. ASI dropped by 24.60 points during the morning session and bounced back in the latter part to close mere 2.55 points or 0.04% higher at 7,241.47 while 20-script S&P SL index marginally lost 2.24 points or 0.06% to close at 4,059.32.

Price appreciation in counters such as Dialog Axiata (closed at LKR 13.40, +3.1%), Ceylon Tobacco (closed at LKR 1,060.00, +1%) and Chevron Lubricants (closed at LKR 385.00, +2.6%) contributed positively to the main index while negative price movements in counters such as John Keells Holdings (closed at LKT 249.00, -1.2%), Carson Cumberbatch (closed at LKR 422.30, -1.8%) and Cargills (closed at LKR 152.00, -1.6%) affected adversely to the S&P SL 20 index performance.

Access Engineering emerged as the top contributor to the market turnover with LKR 144mn underpinned by the crossing of 2mn shares at LKR 37.00 per share. Chevron Lubricants (LKR 128mn) and Dialog Axiata (LKR 36mn) recorded next best contributions to the turnover. Other crossings were recorded in Chevron Lubricants (0.3mn shares at LKR 385.00 per share). Aggregate value of crossings represented 31% of the market turnover. Daily share volume dropped to a nearly 27-week low of 24mn.

Losers surpassed the gainers 110 to 65, while 52 equities remained unchanged. 05 counters touched 52wk low prices while Chevron Lubricants and Panasian Power reached 52wk high price level. Cash map improved to 57% from 46%.

Moreover subsequent reduction in fuel prices on Friday, shares of Lanka IOC was traded heavily throughout the session. Counter dropped to LKR 55.10 but managed to close higher at LKR 56.20, -0.5%. And also the reduction of LP gas prices by LKR 250.00, affected the share price of Laugfs Gas today where Voting share closed at LKR 40.90, -0.2% while non-voting share closed at LKR 36.00, -2.2%.

Further Lanka Cement, Sierra Cable and Access Engineering were among mostly traded stocks of the day.

Furthermore banking sector counters such as National Development Bank (closed at LKR 241.10, +0.5%), DFCC Bank (closed at LKR 217.00, +0.1%), Sampath Bank (closed at LKR 234.50, +1.1%), Union Bank (closed at LKR 24.60, +2.5%) and Sanasa Development Bank (closed at LKR 94.00, +1.5%) advanced during the session.

Foreign investors continued to be net buyers for the 23rd consecutive session with a net inflow of LKR 165mn. Foreign participation was unchanged at 42%. Net foreign inflows were seen in counters such as Chevron Lubricants, Access Engineering and Dialog Axiata while net foreign outflow was mainly seen in People’s Leasing.

Touchwood Investments announced that their case of liquidation was called on 04th December 2014 and date of the next hearing will be on 19th March 2015.

Lanka Securities Research

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