Colombo stock market advanced on Thursday on positive expectations of the budget 2015. The bourse witnessed notable gains today amid foreign inflows. Core index gained 28.35 index points (+0.40%) to end at 7,189.51 while 20-scrip S&P SL20 index bagged 12.94 index points (+0.33%) to close at 3,991.59.

The gains were led by price progressions in counters such as John Keells Holdings (closed at LKR 249.80, +1.3%), People’s Leasing & Finance (closed at LKR 20.70, +3.0%) & Access Engineering (closed at LKR 30.70, +2.3%).

Daily market turnover was LKR 2.3bn. National Development Bank emerged as top contributor to the turnover with LKR 1.2bn supported by several crossings of 5.1mn shares at LKR 240.00 per share. Aggregate turnover in National Development Bank accounted for 54% of the total turnover. John Keells Holdings & Commercial Bank were among the next top contributors with LKR 352mn & LKR 62mn respectively.

Further single crossing was recorded in Royal Ceramics (0.2mn shares at LKR 115.00). The aggregate value of total crossings represented 54% of the total turnover.

Out of 266 counters, 152 advanced, 59 declined while 55 counters remained unchanged. Cash map improved to 62% from 36%. 4 counters managed to reach 52wk high prices and 6 counters touched 52wk low price levels.

Most of the high cap banks such as Hatton National Bank (closed at LKR 190.00, +1.6%), National Development Bank (closed at LKR 242.50, +1.0%), DFCC Bank (closed at LKR 214.00, 0.9%) & Sampath Bank (closed at LKR 235.00, 0.9%) advanced during the session.

Asia Capital emerged as the favored counter for the session, subsequent to the newspaper article regarding an agreement inked by Mr. Dumith Fernando to purchase Asia Securities (a fully owned subsidiary of Asia Capital). Stock touched LKR 13.10 mark & closed at LKR 12.50 (+11.6%).

Consequent to the announcement of right issue of Amana Takaful, the counter was traded heavily during the day. The stock declined to 52wk low price of LKR 1.20 and closed at LKR 1.50 (-16.7%).

Brac Lanka Finance, Lanka Century Investments warrant 0006 & First Capital Holdings were among heavily traded counters.

Meanwhile, Merchant Bank of Sri Lanka announced a debenture issue of 20mn unsecured, redeemable debentures to raise LKR 2bn.

Foreign investors were net buyers for the sixth consecutive day with net inflow of LKR 260mn. Foreign participation was 16%. Net foreign inflows were seen in John Keells Holdings (LKR 230mn), Laugfs Gas non-voting (LKR 16mn), Lanka IOC (LKR 15mn) while net foreign outflow was mainly seen in Lanka Century Investments (LKR 12mn).

Lanka Securities Research