Colombo equity bourse managed to maintain momentum gained on last trading sessions where core index closed with positive returns for the third consecutive day. Main bourse gained 14.77 index points or 0.22% to end at 6,742.56. 20-scrip S&P SL index gained 10.79 index points or 0.29% to close at 3,761.05. Price appreciations in equities such as Bukit Darah (closed at LKR 700.00, +3.8%), John Keells Holdings (closed at LKR 244.90, +1.0%) and Carson Cumberbatch (closed at LKR 465.00, +3.3%) contributed favorably to the index performance.

Daily market turnover reached LKR 1.2bn supported by several off-the-floor dealings recorded in Distilleries (0.4mn shares at LKR 204.00), Hatton National Bank (0.2mn shares at LKR 171.00), Lanka Walltiles (0.4mn shares at LKR 75.00) and John Keells Holdings (0.1mn shares at 244.70). Aggregate value of crossings represented 13% of the total market turnover.

Accordingly John Keells Holdings emerged as the top contributor for the turnover with LKR 399mn followed by Distilleries (LKR 89mn) and Commercial Bank (LKR 55mn).

Gainers offset losers 114 to 102, 61 counters remained unchanged. Cash map improved to 57% from 49%. 28 equities touched 52wk high prices while one counter reached 52wk low price levels.

Meanwhile in accordance with the guidelines set out by Central Bank of Sri Lanka on finance industry consolidation, Commercial Bank announced that the board of directors has passed a resolution to acquire Indra Finance Ltd (a licensed finance company) for a total consideration of LKR 870mn. Commercial Bank voting share closed at LKR 142.50 (-1.7%).

PC Pharma, E-Channelling and Vallibel Finance attracted heavy investor preference and reached 52wk high prices during the session.

Foreign investors were net buyers with net inflow of LKR 326mn worth of equities. Foreign participation was 24%. Foreign inflows were witnessed in counters such as John Keells Holdings (LKR 180mn), Distilleries (LKR 77mn), Hatton National Bank (LKR 35mn) while foreign outflow was mainly seen in ACL Cables (LKR 3mn).

Moreover, retail investor interest on equities increased with yields dribbling at the weekly primary auction held today. Yield on 3 month Treasury bill dropped by 3bp to 6.46%, 6 month T-bill dropped by 4bps to 6.59% and 12 month Treasury bill yield dropped by 12bps to 6.79%.

Lanka Securities Research