Stock Market Review

April, 11, 2014

Colombo bourse concluded the weekly operations in a positive note as both indices closed higher. Benchmark All share price index gained 17.29 (+0.28%) points to close at 6,092.34 and 20-script S&P SL index marginally gained 1.92 (+0.06%) points to close at 3,346.92.  Price progression in Sri Lanka Telecom (closed at LKR 48.00, +3.5%), Lanka IOC (closed at LKR 43.00, +5.1%) and Lion Brewery (closed at LKR 400.00, +2.6%) contributed favorably to the market performances.

Daily market turnover was LKR 541mn. John Keells Holdings (LKR 148mn) positioned top in the turnover list followed by Lanka IOC (LKR 65mn) and Ceylon Tobacco (LKR 44mn). Numbers of crossings were recorded in John Keells Holdings (0.3mn shares at LKR 238.00 per share) and Ceylon Tobacco (0.03mn shares at LKR 1,050.00 per share).

Gainers outweighed the losers 124 to 58, while 60 counters remained unchanged. Cash map improved to 66% from 62%. 13 counters reached to 52wk high price levels while 8 counters touched 52wk low price levels.

Lanka IOC, Madulsima Plantations and Laugfs Gas non-voting managed to attract heavy investor interest during today’s trading session.

Foreign participation was low at 25% for the day. Foreign investors were continued to be net buyers with a net inflow of LKR 183mn. Net foreign inflows were seen in John Keells Holdings (LKR 139.7mn), Ceylon Tobacco (LKR 31.6mn) and Textured Jersey (LKR 18.9mn) whilst net foreign outflow was mainly seen in Renuka Agri (LKR 19.5mn).

Meanwhile Bairaha Farms made an announcement to CSE regarding a new project to set up a large scale commercial animal feed manufacturing factory together with raw materials procurement and modern post-harvest storage facilities. The joint-venture known as Fortune Agro Industries (Pvt) Ltd (FAI) is promoted by Farms Pride (Pvt) Ltd, a partner of Bairaha Farms PLC. The project is approved from BOI and entitled for a 7year tax holiday. The total estimated cost for the project is LKR 1.65bn, which includes LKR 650mn for working capital. Bairaha Farms PLC intends to take up around 45% shares of the equity in this new venture.

Accordingly, Cargo Boat Development announced that they sold their share of property in Colombo 02 to Renuka Lanka (Pvt) Ltd for LKR 107.2mn.

Additionally, Employees’ Provident Fund made and announcement to CSE informing that their investment in Central Finance Company reached 10% of the issued share capital of the company.

Lanka Securities Research

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