Market capitalization of Colombo Bourse exceeded the LKR 3 trillion milestone for the first time as the main index reached 38-month high of 7,163.25 in today’s trading session. So far in the month of September, core index managed to bag 129.16 index points (+1.8%) while 20-scrip S&P SL index gained 116.08 index points (+3.0%).

ASI gained 39.81 index points or 0.56% to end at 7,163.25 while S&P Sl20 index gained 19.10 index points to close at 3,988.59. Price appreciations in counters such as John Keells Holdings (closed at LKR 259.00, +1.1%), Commercial Bank (closed at LKR 161.00, +1.9%) & National Development Bank (closed at LKR 245.00, 2.3%) contributed positively to the index performance.

Daily market turnover was LKR 2.1bn. Off-the-floor dealings were recorded in Citizen Development Business Finance (0.3mn shares at LKR 90.00), Seylan Bank (1.0mn shares at LKR 85.00), Kelsey Developments (1.1mn shares at LKR 35.00) & Union Bank (21.7mn shares at LKR 20.50). Aggregate value of the crossings represented 29% of the total turnover.

Union Bank emerged as top contributor to the turnover with LKR 485mn followed by John Keells Holdings (LKR 247mn) & Citizen Development Business Finance (LKR 116mn) respectively.

Gainers outweighed the losers 140 to 95, while 47 equities remained unchanged. Cash map declined to 51% from 58%. 35 equities managed reach 52wk high price levels. Bluechips such as John Keells Holdings, Commercial Bank, National Development Bank, Hayleys, Chevron Lubricants & Sampath Bank were among the counters that touched 52wk high in today’s session.

Kandy Hotels Company, Merchant Bank & Lanka IOC attracted heavy investor preference during the session.

Subsequent to announcement of the right issue to raise LKR 824mn, shares of Orient Garments slipped by 5.4% to LKR 17.50.

Foreign investors were net buyers with net inflow of LKR 361mn. Foreign participation was 14%. Net foreign inflows were seen in counters such as John Keells Holdings (LKR 167mn), Seylan Bank (LKR 85mn), Sampath Bank (LKR 36mn) while net outflow was mainly seen in Panasian Power (LKR 13mn).

At today’s weekly primary T-bill auction, yield on treasury bills eased further where it declined by 01bps across the board. Accordingly, 3 month yield stood at 6.18%, 6 month yield stood at 6.27% and 12 month yield stood at 6.29%.

Lanka Securities Research