Bourse closed with mixed results on Wednesday amid increase in T-bill yields for the third consecutive week. All share index declined slightly by 6.68 index points (-0.09%) to end at 7,304.61 while S&P SL20 index marginally bagged 7.67 index points or 0.19% to end at 4,119.22.

Price depreciations in Ceylon Tea Services (closed at LKR 700.00, -9.1%), Lanka IOC (closed at LKR 47.00, -4.1%), John Keells Holdings (closed at LKR 206.00, -0.5%) affected main index performance while price inclines in DFCC Bank (closed at LKR 225.00, +2.9%), Ceylon Tobacco (closed at LKR 1,040.00, +0.6%), Carson Cumberbatch (closed at LKR 420.00, +1.2%) contributed positively to the 20-scrip S&P SL20 index performance.

Daily market turnover was LKR 987mn. John Keells Holdings topped the turnover list with LKR 242mn underpinned by several crossings of 0.4mn shares at LKR 207.00 followed by Sampath Bank (LKR 76mn). Distilleries was third best contributor to the turnover with LKR 50mn supported by a single crossing of 0.1mn shares at LKR 240.00. Aggregate value of crossings represented 10% of the total turnover.

Out of 233 counters, 119 slipped, 69 advanced while 45 counters remained unchanged. Cash map declined to 48% from 58%. 16 counters touched 52wk low prices while Ceylon Beverage Holdings reached 52wk high price of LKR 900.00 (+8.4%).

Following the announcement of rights issue Marawila Resorts counter witnessed heavy selling pressure. Stock declined to 52wk low price of LKR 4.20 but managed closed higher at LKR 4.30 (-24.6%). Meanwhile Central Investments & Finance reached 52wk low price of LKR 0.50 but closed higher at LKR 0.70 (-22.2%).

John Keells Holdings, Sanasa Development Bank & First Capital Holdings were among most favored counters.

Janashakthi Insurance counter reached to LKR 25.30 and closed lower at LKR 24.80 consequent to the unfavorable results recorded in the December quarter. Meanwhile company declared final dividend of LKR 1.00 per share (DY-4%).

Royal Ceramics advanced to LKR 120.00 and closed lower at LKR 119.50 (+0.3%) following to the announcement of second interim dividend while Finlays Colombo witnessed zero trades despite the announcement of the final dividend.
Meanwhile Union Assurance declared first & final dividend of LKR 6.50 per share (DY-4%). Counter declined to LKR 175.00 (-1.7%).

Foreign investors were net buyers for the third consecutive day with a net inflow of LKR 209mn. Foreign participation was 36%. Net foreign inflows were seen in John Keells Holdings (LKR 67mn), Sampath Bank (LKR 39mn), Distilleries (LKR 21mn) while net foreign outflow was mainly seen in Sierra Cables (LKR 16mn). Subsequent to the inflows, the year-to-date net foreign inflow passed LKR 2bn mark today.

At the weekly T-bill auction, 12 month T-bill yield further increased by 1bps to 6.13% while 3 month and 6 month T-bill yields increased by 4bps and 6bps to 5.98% and 6.09% respectively.

According to the external sector performance report for December 2014, exports during the month inclined by 2.2%YoY to USD 1.0bn while imports increased by 15.9%YoY to USD 1.80bn. Accordingly, the trade balance further widen by 9.1%YoY to USD 8.3bn during the year 2014. Meanwhile during the year, foreign direct investments grew by 35.9%YoY to USD 1.2bn and workers’ remittances advanced by 9.5%YoY to USD 7.0bn.

Lanka Securities Research