Colombo shares retained the optimistic momentum on Friday to conclude the weekly operations in positive territory. Benchmark All share price index closed on a three and a half year high of 7,501.09 with a gain of 21.40 points or 0.29%. 20-Script S&P SL 20 index gained 11.96 points or 0.29% to end at 4,155.82. During the week core index advanced by 84.94 points (+1.1%) while S&P SL 20 index advanced by 27.52 points (+0.7%). Further year to date All share price index return inclined to 27%.

Today’s gains were mainly driven by the counters such as Lanka Orix Leasing Company (closed at LKR 93.00, +5.7%), Union Bank (closed at LKR 26.50, +6.9%) and Chevron Lubricants (LKR 359.90, +2.9%). Accordingly positive movements in sectors such as Construction & Engineering, Trading and Manufacturing affected positively to the index performances.

Daily market turnover was LKR 2.4bn. Union Bank positioned at the top of the turnover list with LKR 313mn followed by Access Engineering (LKR 310mn) and Tokyo Cement (LKR 118mn).

Several crossings were recorded in Citizens Development Business Finance (1mn shares at 95.00 per share), ACL Cables (0.5mn shares at LKR 83.00 per share), Distilleries (0.2mn shares at LKR 210.00 per share), Tokyo Cement (0.3mn shares at LKR 70.00 per share), Softlogic Holdings (1.1mn shares at LKR 19.20 per share), Union Bank (0.8mn shares at LKR 26.00 per share) and Seylan Bank non-voting (0.4mn shares at LKR 58.30 per share). Aggregate value of crossings represented 11% of the total market turnover.

Out of 294 counter traded 132 advanced, 107 slipped and 55 equities remained unchanged. 35 counters touched 52wk high price levels while 04 counters reached 52wk low prices. Cash map inclined to 59% from 56%.

Subsequent to the sharp earnings growth in the 2^nd quarter interim results MTD Walkers attracted heavy investor interest during the session and closed on 52wk high price level of LKR 75.00, +10%. Accordingly Union Bank (closed at LKR 26.50, +6.9%), Access Engineering (closed at LKR 39.90, +2.3%) and Vallibel One (closed at LKR 26.20, +6.01%) reached 52wk high price levels and traded heavily during the session.

Foreign investors were net buyers for the seventh consecutive day with a net inflow of LKR 193mn worth of equities. Foreign participation was 15%. Net foreign inflows were seen in Access Engineering (LKR 91mn), Tokyo Cement (LKR 51mn) and Sampath Bank (LKR 46mn) while net foreign outflows was mainly seen in Union Bank (LKR 34mn).

Foreign investors were also net buyers for the week with a net foreign inflow of LKR 2.5bn. Net foreign participation was at 21%. Net foreign inflow was mainly seen in People’s Leasing (LKR 864mn) whereas net foreign outflow was seen in Chevron Lubricants (LKR 116mn). Further the net foreign inflow for the year was LKR 18bn.

People’s Leasing emerged as the top contributor for the weekly turnover with LKR 1.4bn followed by John Keells Holdings (LKR 1bn) and Access Engineering (LKR 922mn). Subsequent to the announcement of the withdrawal of windingup case by petitioner against Orient Garments, the counter emerged as the top gainer for the week while Renuka Holdings non-voting was the top loser due to XR of the rights issue.

Most of the banking sector counters such as Union Bank (+9%), Seylan Bank non-voting (+6%), National Development Bank (+6%) and Sampath Bank (+3%) contributed positively to the performances of the both indices. During the week sectors such as Construction & Engineering (+10%), Manufacturing (+5%) and Land & Property (+4%) advanced.

Lanka Securities Research