Colombo stock market started weekly operations on optimistic note and maintained positive momentum gained on last week. Main index bagged 22.91 index points or 0.31% to end at 7,524.00 while 20-scrip S&P index gained 14.26 index points (+0.34%) to end at 4,170.08. Price appreciations in counters such as Dialog Axiata (closed at LKR 13.20,+5.6%), Nestle Lanka (closed at LKR 2,299.00, +7.9%) and Carson Cumberbatch (closed at LKR 440.00, +2.6%) contributed positively contributed to index performance.

Daily market turnover was LKR 2.4bn. Dialog Axiata topped the turnover list with LKR 340mn supported by several crossings of 19.4mn shares at LKR 12.50. Access Engineering & Seylan Bank were next best contributors to the turnover with LKR 223mn & LKR 149mn.

Several crossings were recorded in Ceylon Guardian Investment Trust (0.3mn shares at LKR 202.00), Central Finance (0.2mn shares at LKR 266.00), Piramal Glass (6.4mn shares at LKR 4.70) and Seylan Bank (1.5mn shares at LKR 95.00). Aggregate value of crossings represented 28% of the total turnover.

Access Engineering, Union Bank and Sierra Cables attracted heavy investor preference during the day. All three counters reached 52wk high prices of LKR 42.60, LKR 27.20, and LKR 3.40 respectively.

Most of the banking counters such as DFCC Bank (LKR 232.00, +0.7%), Sampath Bank (LKR 243.00, +1.3%), and Nations Trust Bank (LKR 100.50, + 2.2%) advanced during the session. Further following the release of interim financial statements, Commercial Bank (LKR 175.00, +0.6%), Union Bank (LKR 26.70, +2.3%), National Development Bank (LKR 262.50, +1.4%) and HDFC Bank (LKR 70.50, +1.6%) advanced during the day.

Expolanka Holdings announced that company has fully divested its investments in companies such as Expolanka Teas (Pvt) Ltd, Expolanka Plantations (Pvt) Ltd, World Spices & Teas (Pvt) Ltd, Neptune Holdings (Pvt) Ltd, Castle Commercial (Pvt) Ltd, Expolanka Pharmaceuticals (Pvt) Ltd, Bio Extracts (Pvt) Ltd and Saffron Foods (Pvt) Ltd for a total consideration of LKR 740mn to Aberdeen Holdings (Pvt) Ltd. Meanwhile company entered into an agreement to sell its land located in Avissawella Road to Aberdeen Holdings (Pvt) Ltd for a consideration of LKR 421mn.

Insurance sector counters such as Janashakthi Insurance (LKR 24.30, -0.4%), Union Assurance (LKR 155.00, -8.9%), HNB Assurance (LKR 90.10, -2.0%) and Ceylinco Insurance (LKR 1,350.00, -0.2%) slipped during the day.

Meanwhile, Lion Brewery announced a debenture issue of 10mn rated, unsecured, redeemable debentures to raise LKR 1bn with an option to issue further 10mn debentures.

Please note that the data relating to foreign sales & purchases were not available at the time of writing this review.

Lanka Securities Research