Colombo Stock market started its weekly operations on optimistic note where main bourse hit 34 month high of 6,766.19. Core index gained 34.32 index points (+0.51%) to end at 6,756.52 while 20-scrip S&P SL20 index gained 29.17 index points (0.78%) to close at 3,768.15. Price appreciations in equities such as Commercial Bank (closed at LKR 144.00, +2.5%), John Keells Holdings (closed at LKR 246.90, +0.8%) and Dialog Axiata (closed at LKR 11.00, +0.9%) contributed favorably to the index performance.

Daily market turnover was LKR 905mn. Several off-the-floor dealings were recorded in counter such as DFCC Bank (1.0mn shares at LKR 162.00) and Distilleries (0.76mn shares at LKR 204.00). Aggregate value of crossings represented 35% of the total turnover.

Accordingly, DFCC Bank emerged as the top contributor for the turnover with LKR 166mn followed by Distilleries (LKR 158mn) and Sunshine Holdings (LKR 59mn).

Gainers offset losers 157 to 64, while 43 counters remained unchanged. Cash map improved to 67% from 45%. 35 counters reached to 52wk high prices while one counter touched 52wk low price levels.

George Steuart Finance made an announcement regarding a memorandum of understanding between Deshodaya Development Finance Limited, George Steuart & Company Limited and Capital Trust Holding Limited to acquire majority shares of the George Steuart Finance. Subsequent to the announcement counter attracted heavy investor preference during the day. Stock closed at LKR 44.20, (-7.3%). Further, Central Investments & Finance, MTD Walkers and Sinhaputhra Finance were among heavily traded equities.

Further, Ceylon Leather Products (CLPL) disclosed that the company has increased the shareholding of South Asia Textile Industries Lanka (Pvt) Ltd to 80.4% through a right issue where CLPL invested LKR 306mn. Meanwhile Lanka Century Investments has subscribed approx. 481mn shares for a consideration of LKR 48mn. Accordingly Ceylon Leather Products & Lanka Century Investments holds 93% of the issued shares of South Asia Textile Industries Lanka (Pvt) Ltd.

Foreign investors were net sellers with net outflow of LKR 152mn worth of equities. Foreign participation was 32%. Foreign outflows were seen in counters such as DFCC Bank (LKR 163mn), Laugfs Gas (LKR 18mn), Sunshine Holdings (LKR 5mn) while foreign inflow was mainly seen in John Keells Holdings (LKR 17mn).

Lanka Securities Research