Colombo equity market closed on Tuesday with positive returns as the bourse witnessed the best turnover since March 2012. Core index managed to bag 6.75 index points or 0.10% to close at 6,981.46 while 20-scrip S&P index earned 17.93 index points or 0.47% to close at 3,848.50.

Bourse posted favorable returns with the help of blue chip counters such as John Keells Holdings (closed at LKR 244.00, +1.7%), Lion Brewery (closed at LKR 624.50, 2.4%) and Dialog Axiata (closed at LKR 11.10, +1.0%).

Daily market turnover was LKR 8.2bn. Hefty off-the-floor dealings were recorded in John Keells Holdings (30mn shares at LKR 240.00) & Royal Ceramic (0.2mn shares at LKR 117.50). Accordingly John Keells Holdings topped the turnover list with LKR 7.3bn and accounted for 88% of the total turnover. Colombo Dockyard (LKR 124mn) & Textured Jersey (LKR 64mn) were among top contributors to the turnover.

Out of 277 counters, 123 counters slipped, 100 counters advanced while 54 counters remained unvaried. Cash map advanced to 52% from 46%. 13 equities reached to 52wk high price levels while 3 equities touched 52wk low prices.

MTD Walkers attracted heavy investor preference for the second consecutive day. Further, penny stock such as Seylan Merchant Bank, PC Pharma, Tess Agro were among heavily traded counters.

Foreign investors were net sellers of LKR 4.5bn worth of equities. Foreign participation was 61%.

Foreign net outflows were mainly seen in John Keells Holdings and related counters such as John Keells Holdings share (LKR 4.5bn), warrant 0023 (LKR 15mn) & warrant 0022 (LKR 12mn) respectively. Net foreign inflow was mainly seen in Ceylon Cold Stores (LKR 17mn). Subsequent to the net foreign outflows witnessed during the session, YTD net inflows for the CY2014 declined to LKR 7.5bn from LKR 12bn.

As of today, approximately 260 counters have released the interim financial statements and the aggregate corporate earnings have increased by 25%YoY. Accordingly the adjusted market PE is at 15.2x while the market PBV is at 1.9x.

Lanka Securities Research