Stock Market Review – 18th Feb 2015

February, 18, 2015

Colombo shares concluded the day on a weak note following a batch of mixed corporate earnings and rising T-bill yields. Main index lost 33.91 points or 0.46% to end at 7,266.84 while S&P SL 20 index marginally gained 3.49 points (+0.09%) to end at 4,074.62. Subsequent to today’s losses the year to date return of ASI declined to -0.4%.

Daily market turnover was LKR 804mn. John Keells Holdings emerged as the top contributor to the market turnover with LKR 145mn followed by Commercial Bank (LKR 122mn) and Hatton National Bank (LKR 69mn).

Price depreciation in counters such as Ceylon Tobacco (closed at LKR 1,020.10, -2.9%), John Keells Holdings (closed at LKR 210.00, -1.4%) and Dialog Axiata (closed at LKR 12.00, -2.4%) pulled back the index performance.

Several crossings were recorded in Commercial Bank (0.5mn shares at LKR 180.00 per share), Distilleries (0.1mn shares at LKR 230.00 per share) and John Keells Holdings (0.2mn shares at LKR 213.00 per share). Aggregate value of crossings represented 18% of the market turnover.

Losers outweighed the gainers 131 to 68 while 61 counters remained unchanged. 12 counters reached to 52wk high prices while 07 counters dropped to 52wk low prices. Cash map increased to 45% from 41%.

Shares of Eastern Merchants were traded heavily during the session following the announcement on sale of the land and buildings in Union Place and Vauxhall Street. The counter increased sharply to a 52wk high price of LKR 11.70, +75%.

Subsequent to the favorable December quarter earnings Lanka Aluminium manage to attract investor interest. The counter closed at LKR 73.10,+7.5%. Further shares of Entrust Securities, Vallibel Power and John Keells Holdings were traded heavily during the session.

Foreign investors were net sellers for the day with net outflow of LKR 57mn. Foreign participation was 33%. Net foreign outflows were seen in Hatton National Bank non-voting (LKR 30mn), John Keells Holdings (LKR 26mn) and Chevron Lubricants (LKR 14mn) while net foreign inflow was mainly seen in Sampath Bank (LKR 12mn). With todays’ outflows, the year to date foreign inflow declined to LKR 1.5bn.

At the weekly T-bill auction, 12 month T-bill yield further increased by 2bps to 6.12% while 3 month and 6 month T-bill yields increased by 6bps and 5bps to 5.94% and 6.03% respectively.

DIMO released their quarter results and the company recorded a profit growth of 140%YoY. Reacting to the favorable results the counter advanced today to close at LKR 668.00, +4.4%. Further Tawalakelle Tea Estates advanced by 5.4% to LKR 37.00 following the 20%YoY gain reported in the latest quarter. Hemas Holdings reported a decrease in profits by 45%YoY due to a one off loss of LKR 157mn recorded with regard to the disposal of the group’s stake in Hemas Power. The counter dropped to LKR 84.00 with a decrease of 2%.

Moreover Singhe Hospitals Limited announced that the CSE has approved the listing of ordinary voting shares of the company on Diri Savi board. The company offer 100mn ordinary shares as the initial public offering at a price of LKR 2.50 per share. The prospectus would be delivered on 27th February 2015.