Colombo bourse retained the optimistic momentum on Wednesday to close in positive territory. All share price index closed at 6,999.97 with a gain of 18.51 points or 0.27% while S&P SL 20 index gained 14.11 points or 0.37% to end at 3,862.61. Main index gained 186.07 points so far in this month.  The gains were mainly led by favorable price movement in Nestle Lanka (closed at LKR 2,170.00, +1.3%), Commercial Leasing & Finance (closed at LKR 4.50, +4.7%) and Commercial Credit (closed at LKR 32.30, +15.8%).

Daily market turnover was LKR 1.8bn. Sampath Bank topped the turnover list with LKR 335mn underpinned by several crossing where 0.9mn shares changed hands at LKR 229.70 per share. Commercial Bank (LKR 290mn) and Lanka IOC (LKR 69mn) recorded the next best contributions to the market turnover.

A number of negotiated deals were recorded in Softlogic Holdings (1.5mn shares at LKR 15.70 per share), Central Finance (0.1mn shares at LKR 240.00 per share) and Lanka IOC (1.6mn shares at LKR 37.90 per share). The aggregate value of crossings represented 17% of the total market turnover.

Moreover sectors such as Services sector (+1.3%), Telecommunication sector (+1.3%) and Banks, Finance & Insurance sector (1.0%) performed positively during today’s trading session.

Gainers outweighed losers 133 to 80, while 63 counters remained unchanged. Cash map inclined to 56% from 52%. 21 equities reached to 52wk high price levels while only 03 equities touched 52wk low prices.

Meanwhile shares of Lanka Century Investments, Hayleys MGT Knitting Mills and PC Pharma attracted heavy retail investor interest during the session.

Foreign investors were net sellers with a net outflow of LKR 14mn. Foreign participation was 26%. Net foreign outflows were mainly seen in Sampath Bank (LKR 182mn), Lanka Hospitals (LKR 9mn) and C.M Holdings (LKR 5mn) while net foreign inflow was mainly seen in Commercial Bank (LKR 34mn).

At the weekly primary T-bill auction, yield on both 6 month and 12 month  treasury bills eased further today where  6 month yield dropped by 2bps to 6.28% while 12 month  yield dropped by 1bp to 6.30%.

Further, dealing in shares of United Motors Lanka was suspended today until 22^nd of August, subsequent to the sub division of shares.

Lanka Securities Research