Colombo equities managed to regain lost grounds on Wednesday where both indices witnessed hefty returns amid net foreign inflows. Core index bagged 83.36 index points or 1.16% to end at 7,288.83 while 20-scrip S&P SL20 index increased by 53.09 index points or 1.32% to end at 4,064.84. Price inclines in Commercial Bank (closed at LKR 164.00, +4.4%), John Keells Holdings (LKR 249.50, +1.0%) & Hemas Holdings (closed at LKR 63.70, +5.6%) contributed positively to the index performance.

Daily market turnover was LKR 1.6bn. Alufab topped the turnover list with LKR 224mn supported by crossings of 7.3mn shares at LKR 23.00. Hayleys purchased the entire 7.3mn shares (60.7% of total issued shares) of Alufab and Hayleys would make a mandatory offer to purchase the balance 4.7mn shares (39.3% of total issued shares) of Alufab in due course. Hayleys counter closed at LKR 354.00 (+3.9%) while Alufab end at LKR 23.70 (+24.7%). Lanka IOC (LKR 206mn) and Watawala Plantations (LKR 156mn) were among top turnovers.

Several crossings were recorded in Watawala Plantations (8.2mn shares at LKR 17.00), Asiri Hospital Holdings (5.6mn shares at LKR 22.50), Orient Finance (5.8mn shares at LKR 14.00) & Hemas Holdings (0.4mn shares at LKR 62.00). Aggregate value of crossings represented 34% of the total turnover.

Cash map declined to 55% from 69%.

Subsequent to purchase by Hayleys, Alufab attracted heavy investor preference and counter reached to 52wk high. First Capital Holdings, Lanka IOC & Dunamis Capital were among heavily traded counters.

Meanwhile subsequent to the announcements made yesterday by Hemas Power & Hemas Holdings, the Hemas Holdings counter touched 52wk high price of LKR 64.70.

Foreign investors were net buyers with net inflow of LKR 201mn worth of equities. Foreign participation was 23%. Net foreign inflows were seen in Lanka IOC (LKR 139mn), Asiri Hospital Holdings (LKR 129mn), Hemas Holdings (LKR 31mn) while net foreign outflow was mainly seen in Alufab (LKR 171mn).

At today’s weekly primary T-bill auction, yield on Treasury bill advanced after 13 months. 12 month yield advanced by 11bps to 6.00% while 3 month & 6 month bids were rejected.

Lanka Securities Research