Stock Market Review – 10th Dec 2014

December, 10, 2014

Colombo stock market managed to rebound on Wednesday amid Treasury bill yields declining further in today’s auction. Core index bagged 36.34 index points or 0.50% to end at 7,254.28 and 20-scrip S&P SL index gained 19.71 index points (0.49%) to close at 4,083.41. Price appreciations in counters such as John Keells Holdings (closed at LKR 254.00, +1.4%), Hemas Holdings (closed at LKR 75.00, +5.6%) & Chevron Lubricants (closed at LKR 394.10, +1.8%) contributed positively to the index performance.

Daily market turnover was LKR 1.1bn. Janashakthi Insurance topped the turnover list with LKR 282mn underpinned by single crossing of 11.4mn shares at LKR 23.00. Seylan Bank & John Keells Holdings were next best contributors to the turnover with LKR 196mn & LKR 109mn respectively.

Several crossings were recorded in Seylan Bank (2.04mn shares at LKR 95.00) & Distilleries (0.12mn shares at LKR 205.50). Aggregate value of crossings represented 45% of the total turnover.

Out of 230 counters, 125 advanced, 48 declined and 57 counters remained unchanged. Cash map improved to 52% from 49%. 4 counters reached 52wk high prices while another touched 4 stocks 52wk low price levels.

Most of the investors gathered around Sanasa Development Bank rights during the day. The rights reached LKR 24.00 during the day and closed at LKR 20.00 (+66.7%). Further Sanasa Development Bank voting share and Lanka Cement were among most favored counters.

Subsequent to the announcement of the dates of right issue, the shares of Palm Garden Hotels reached LKR 86.00 and closed at LKR 84.00 (+4.0%).

Most of the insurance counters such as Janashakthi Insurance (LKR 23.10, +3.1%), HNB Assurance (LKR 85.90, +2.5%), Union Assurance (LKR 161.00, +0.4%), Asian Alliance Insurance (LKR 152.00, +2.7%) and Amana Takaful (LKR 2.00, +11.1%) advanced during the session.

Foreign investors continued to be net sellers for the second consecutive day with net outflow LKR 167mn worth of equities. Foreign participation was 24%.  Foreign net outflows were mainly seen in Janashakthi Insurance (LKR 262mn), Hatton National Bank non-voting (LKR 15mn) and Expolanka (LKR 4mn) while foreign net inflow was mainly seen in John Keells Holdings (LKR 76mn).

At today’s weekly primary T-bill auction, 6 month & 12 month yields declined by 1bps to 5.83% & 5.98% respectively. 3 month bills were not offered today. Auction was oversubscribed by 3.1 times.

Lanka Securities Research

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