Colombo bourse witnessed an action-packed day amid the speculation of changes in top position in the SEC and the unexpected reduction in fuel prices by 22% ahead of the announced schedule. In the morning hours ASI declined to 7,223.92 (-93.32 index points or -1.3%) and recovered back to gain 5.19 index points or 0.07% to end at 7,329.59. Meanwhile 20-scrip S&P SL index gained 4.17 index points (+0.10%) to close at 4,107.82.

Price advancements in counters such as Ceylon Tobacco (closed at LKR 1,099.70, +2.1%), Bukit Darah (closed at LKR 730.00, +4.3%) and Lanka IOC (closed at LKR 58.20, +7.8%) supported the index performance.

Daily market turnover crossed the LKR 1bn mark after four trading session and reached LKR 1.2bn. John Keells Holdings topped the turnover list with LKR 192mn followed by Hatton National Bank (LKR 149mn) and Commercial bank (LKR 132mn).

Further several negotiated deals were recorded in Commercial Bank (0.6mn shares at LKR 178.00 per share), Hatton National Bank (0.3mn shares at a price range of LKR 207.00 – 207.50 per share) and Distilleries Company of Sri Lanka (0.1mn shares at LKR 233.00 per share). The aggregate value of crossings represented 16% of the total market turnover.

Out of 245 counters traded today 105 declined, 93 increased and 47 closed without a change. 11 equities dropped to a 52wk low prices while only Renuka Foods non-voting share reached a 52wk high price. Cash map inclined to 50% from 36%.

Moreover Palm Garden Hotels rights, Union Bank, Lanka IOC and John Keells Holdings were among mostly traded stocks for the day.

Foreign investors were continued to be net buyers for the second consecutive day with a net inflow of LKR 87mn. Foreign participation was 18%. Net foreign inflows were witnessed in counters such as Hatton National Bank, Dialog Axiata and Amana Bank whereas net foreign outflow was mainly seen in John Keells Holdings.

E-Channelling made an announcement to the CSE informing that the company resolved on 21st Jan 2015 (Yesterday) to amalgamate ECL Soft (Pvt) Ltd with E-Channelling PLC. ECL Soft (Pvt) Ltd is a fully owned subsidiary of E-Channelling PLC.

In addition, the Colombo Stock Exchange has been named as the most sustainable growth exchange in Asia for 2014 by Capital Finance International (CFI), a print journal and online resource based in UK.

Lanka Securities Research