Colombo equities swung between gains and losses today to end the market activities on opposite directions. The benchmark index reached a high of 7,590.15 (23.45 points, +0.3%) in the morning session but closed in the minus column at 7,549.85 with a loss of 16.85 points (-0.22%). S&P SL 20 index gained slightly 4.09 points (+0.10%) to end at 4,265.68.

Price depreciation in counters such as Commercial Leasing & Finance (closed at LKR 4.50, -6.3%), Union Bank (closed at LKR 27.90, -3.5%), Carson Cumberbatch (closed at LKR 436.10, +0.9%) affected adversely to the core index performance while price inclines in Chevron Lubricants (closed at LKR 455.00, +4.7%), Ceylon Tobacco (closed at LKR 1,105.00, +1.4%), Lanka Orix Leasing & Company (closed at LKR 94.00, +1.6%) contributed positively to the 20-script S&P index performance.

The market gained 52.25 points or +0.7% after the election responding to the political switch. However, the market dropped yesterday and today mostly due to profit taking and the investors’ indecisiveness on newly appointed cabinet and the economic policies. All share price index gained 250.90 points (+3.4%) so far this month while S&P SL 20 index gained 176.54 points or 4.3%.

Daily market turnover was LKR 1.3bn. John Keells Holdings emerged as the top contributor to the market turnover with LKR 336mn followed by Distilleries (LKR 260mn) and Union Bank (LKR 80mn). A single negotiated deal was recorded in Dialog Axiata where 1.6mn shares changed hands at LKR 13.80 per share. The share volume reached one week low of 30mn shares.

Losers surpassed the gainers 112 to 67 while 62 equities remained unvaried. Cash map further dropped today to 31% from 42% in the last trading session. 6 counters touched 52wk low price levels while Chevron Lubricants and A I A Insurance Lanka reached 52wk high price levels.

Further shares of Union Bank, Access Engineering and John Keells Holdings were among mostly traded counters.

Commercial Bank declared a second interim dividend of LKR 1.00 per share (XD date – 23rd January 2015) yesterday. Nonetheless the voting share (closed at LKR 190.00, -0.1%) and the non-voting share (closed at LKR 138.50, -1.1%) closed lower in today’s trading session.

Foreign investors were net sellers today with net foreign outflow of LKR 404mn after two consecutive days of net buying. Foreign participation was 39%. Net foreign outflows were witnessed in Distilleries (LKR 204mn), John Keells Holdings (LKR 92mn), Union Bank (LKR 45mn) while net foreign inflow was mainly seen in Hatton National Bank (LKR 38mn).

Meanwhile Treasury bill yields started to pick up slowly as the 12 month T-bill yield increased by 4bps to 6.0% at today’s weekly primary T-bill auction. Further both 6 month and 3 month T-bill yields increased by 3bps each to 5.79% and 5.89% respectively.

Most of the high cap baking sector counters such as Sampath Bank (-1.5%), National Development Bank (-1%), DFCC Bank (-0.8%) and Commercial Bank (-0.1%) ended lower today while only Hatton National Bank (+0.4%) advanced.
Ceylinco Insurance informed that the two extraordinary general meetings scheduled to be held on 14th January 2015 are postponed to 20th January 2015.

Please note that CSE will be closed on 14th January (tomorrow) and 15th January (Thursday) due to public and bank holidays.
Lanka Securities Research