Stock Market Review – 17th Oct 2014

October, 17, 2014

Colombo bourse extended the losses on Friday to wrap the weekly activities in negative territory. All Share Price index lost 22.60 points (-0.31%) to end at 7,234.47 and S&P SL 20 index lost 26.84 points (-0.66%) to end at 4,029.55. The core index has dropped 87 points (-1.2%) during the week whereas S&P SL 20 index has lost 80 points (-2%).

Price declines in counters such as John Keells Holdings (closed at LKR 248.00, -0.8%), Commercial Leasing & Finance (closed at LKR 4.50, -6.3%) and Sri Lanka Telecom (closed at LKR 49.50, -2.8%) contributed adversely to the index performance. Accordingly, negative movements in sectors such as Telecommunications, Banks Finance & Insurance and Investment Trusts affected the index performance.

Daily market turnover was LKR 1.0bn. Commercial Bank positioned at the top of the turnover list with LKR 201mn underpinned by crossings, where 1.2mn shares changed hands at the price range of LKR 164.00-165.00. The crossings accounted for 19% of the total market turnover. Accordingly First Capital Holdings (LKR 87mn) and Alufab (LKR 60mn) recorded next best contributions to the turnover.

Out of 272 counters traded 120 advanced, 100 slipped and 52 equities remained unchanged. Cash map marginally inclined to 50% from 48%.

Meanwhile shares of Alufab and First Capital Holdings continue to attract heavy investor interest during the session. Further BRAC Lanka Finance, City Housing & Real Estate and Multi Finance were among heavily traded stocks.

Lanka Century Investments Warrant 0006 was the top gainer for the session while Commercial Leasing & Finance became the top loser for the day. Alufab emerged as the biggest gainer during week whereas Blue Diamond was the top loser.

Foreign investors were net buyers with net inflow of LKR 16mn worth of equities. Foreign participation was 27%. Net foreign inflows were seen in Hemas Holdings (LKR 40mn), Laugfs Gas non-voting (LKR 21mn) and Softlogic Holdings (LKR 7mn) while net foreign outflow was mainly seen in John Keells Holdings (LKR 25mn).

Foreign investors were also net buyers for the week with a net foreign inflow of LKR 959mn while foreign participation was 24% for the week. Net foreign inflow was mainly seen in Commercial Bank (LKR 272mn) whereas net foreign outflow was mainly seen in Alufab (LKR 222mn) during the week.

Lanka Securities Research