‘The election rally’ lost steam on Monday as profit-taking led by local investors halted the seven-day winning streak. The Bourse opened positively after the politically eventful weekend and reached a high of 7,670.98 (+65 points) in the morning session but reversed during the latter half to finish at 7,566.70 with a loss of 39.09 index points or 0.51%. 20-scrip S&P SL20 index slipped by 10.91 index points (-0.26%) to close at 4,261.59.

The stock market climbed higher in last seven consecutive trading days, advancing more than 318.02 points or 4.4% in that span. Subsequent to the index appreciation, the Market PE has increased to 15.0x from 14.2x.

Price depreciations in index-heavy counters such as Carson Cumberbatch (closed at LKR 440.00, -4.3%), Access Engineering (closed at LKR 30.00, -9.6%) and Nestle Lanka (closed at LKR 2,160.00, -1.4%) dragged the index performance to negative zone.

Daily market turnover was LKR 2.6bn. Commercial Bank emerged as the top contributor to the turnover with LKR 595mn underpinned by several crossings totaling to 2.5mn shares at LKR 194.00. The turnover from the counter represented 23% of the total turnover.

John Keells Holdings & Access Engineering were next best contributors to the turnover with LKR 239mn & LKR 182mn respectively.

Several crossings were recorded in Panasian Power (6.3mn shares at LKR 3.40), Dialog Axiata (5.2mn shares at LKR 14.00), Pan Asian Banking Corporation (1.0mn shares at LKR 27.00) & John Keells Holdings (LKR 0.1mn shares at LKR 242.00). Aggregate value of crossings represented 25% of the total turnover.

Losers outweighed gainers 166 to 50, while 37 counters remained unchanged. Cash map declined from 58% to 42%. 32 counters reached 52wk high prices while 10 counters touched 52wk low price levels. Out of 32 counters that reached 52wk high prices, 17 counters failed to maintain the price level and closed lower.

Most of the banks such as Commercial Bank (LKR 194.00), Hatton National Bank (LKR 210.00), Sampath Bank (LKR 258.00), Union Bank (LKR 30.30), Nations Trust Bank (LKR 113.00) & HDFC Bank (LKR 72.30) advanced to 52wk high price levels.

Meanwhile rights of MTD Walkers commenced trading today. The counter reached a high of LKR 23.80 and closed lower at LKR 19.00 (-2.6%). Further MTD Walkers voting share declined by 3.1% to close at LKR 62.50.

Further shares of Access Engineering (LKR 30.00,-9.6%), Union Bank (LKR 28.90,-0.3%) & Sierra Cables (LKR 4.5,-2.2%) were traded heavily during todays’ trading session.

Moreover, manufacturing companies such as Piramal Glass, Dipped Products, Royal Ceramic, Textured Jersey and ACL Cables shed returns gained on previous sessions.

Foreign investors remained keen on the local equities and closed the day as net buyers with a net inflow of LKR 231mn. Foreign participation reached 45%, which is the highest for this year so far. Interestingly, both foreign buying and selling exceed LKR 1bn mark during the session after 10 weeks.

Net foreign inflows were seen in counters such as Commercial Bank, John Keells Holdings and Dialog Axiata.

Meanwhile, Amana Takaful announced that the company has successfully completed the segregation of its long term and general insurance business segments.

Further, NDB Capital Holdings declared that the exit offer in relation to delisting process has been completed by the company.

Please note that CSE has declared a holiday on 14th January 2015 due to visit of His Holiness Pope Francis to Sri Lanka.

Lanka Securities Research