Colombo equities advanced on Tuesday for the sixth consecutive day amid net foreign inflow. During the six days, core index gained 144.85 index points (+2.0%) and witnessed net foreign inflow of LKR 2.6bn.

ASI advanced by 24.23 index points or 0.32% to end at 7,548.23 recording 43-month high while S&P SL20 index crossed 4,200 mark and closed at 4,204.87 with a gain of 34.79 index points (+0.83%). Price inclines in stocks such as Dialog Axiata (closed at LKR 14.00, +6.9%), Commercial Bank (closed at LKR 179.90, +2.7%) and Carson Cumberbatch (closed at LKR 474.90, +7.9%) contributed positively to the index performance.

Daily market turnover was LKR 3.8bn. Access Engineering emerged as the top contributor to the total turnover underpinned by hefty crossings totaling to 40mn shares at LKR 40.10. Crossings of Access Engineering represented 42% of the market turnover.

Seylan Bank and Dialog Axiata were next best contributors to the total turnover with LKR 285mn and LKR 182mn respectively.

Numerous crossings were recorded in Central Industries (1.6mn shares at LKR 80.00), Ceylon Tobacco (0.03mn shares at LKR 1,150.00), Commercial Credit & Finance (0.5mn shares at LKR 46.50) and Seylan Bank (0.3mn shares at LKR 100.00). Aggregate value of the crossings represented 47% of the total turnover.

Out of 270 counters, 117 slipped, 111 advanced and 42 counters remained unchanged. Cash map declined to 47% from 56%. 26 counters reached 52wk high prices while 5 counters touched 52wk low price levels.

Subsequent to the declaration of interim dividend of LKR 0.25 per share by Richard Pieris counter reached an intra-day high of LKR 9.20 and closed at LKR 9.00 (+1.1%).

Meanwhile LKR 5bn debenture issue of Lanka Orix Leasing Company was oversubscribed within few hours of opening. Funds will be used to retire short term debt with an average interest rate of 10%.

Access Engineering, Sierra Cables and Dialog Axiata attracted heavy investor preference for the second consecutive day. All three counters reached 52wk high prices of LKR 43.50, LKR 3.80, and LKR 14.10 respectively.

Foreign investors closed the day as net buyers for the ninth consecutive day with a net inflow of LKR 213mn worth of equities. Foreign participation was 6%. Net foreign inflows were seen in Commercial Bank (LKR 91mn), Hatton National Bank (LKR 45mn), Ceylon Tobacco (LKR 36mn) while net foreign outflows was mainly seen in John Keells Holdings (LKR 27mn).

Lanka Securities Research