Colombo stock market closed on Wednesday on an optimistic note where both indices witnessed positive returns. ASI gained 6.24 index points or 0.09% to close at 6,954.14 while S&P SL20 index gained 2.74 index points to close at 3,820.26. Price appreciations in equities such as Nestle Lanka (closed at LKR 2,199.00, +4.6%), John Keells Holdings (closed at LKR 238.50, +0.2%) and Sri Lanka Telecom (closed at LKR 55.50, +1.1%) contributed positively to the index performance.

Daily market turnover was LKR 1.8bn. Several crossings were recorded in counters such as Hatton National Bank (0.4mn shares at LKR 170.00), Textured Jersey (1.4mn shares at LKR 18.60), Access Engineering (15mn shares at LKR 27.50) & Chilaw Finance (3.1mn shares at LKR 25.50). Aggregate value of crossings represented 32% of the total turnover.

Access Engineering emerged as the top contributor to the turnover with LKR 456mn followed y Chilaw Finance (LKR 168mn) & Textured Jersey (LKR 100mn) respectively.

Gainers offset losers 144 to 73, while 58 counters remained unchanged. Cash map improved to 57% from 50%. 46 counters reached 52wk high prices while 02 counters touched 52wk low price levels.

Subsequent to the announcement of warrants attached right issue by Ascot Holdings, counter attracted heavy investor preference during the session. Company will utilize the funds to construct a hotel in Yala. Counter closed at LKR 104.00, (+15.7%). Chilaw Finance, Lanka Century Investments & Textured Jersey were among heavily traded counters.

Further, Palm Garden Hotels announced a rights issue to raise funds to construct star rated hotel and to repay existing debts. Company intends to raise approx. LKR 1.78bn. Counter closed at LKR 100.00, (-17.4%).

Foreign investors were net sellers with net outflow of LKR 70mn worth of stocks. Foreign participation was 12%. Foreign net outflows were seen in counters such as Textured Jersey (LKR 67mn), Hatton National Bank (LKR 64mn), Dialog Axiata (LKR 13mn) while net inflow was mainly seen in Ceylon Tobacco (LKR 21mn).

At the weekly primary T-bill auction held today, yield on both 3 month and 6 month treasury bills dropped by 9bps to 6.19% and 6.30% respectively whereas 12 month Treasury bill yield dropped by 14bps to 6.31%.

Lanka Securities Research