Colombo shares swung between gains and losses and ended higher in thin trading on Monday as investors adopted a wait-and-see approach. The market turnover reached 8-month low in today’s lackluster trading session while the volume touched a one month low of 16mn shares. Investors are remaining in sidelines ahead of tomorrow’s monetary policy review and Thursday’s mini budget which is expected to provide a direction to the sluggish market sentiment.

Benchmark All Share Price index lost 11.28 points in the morning session and bounced back strongly in the afternoon session with a gain of 50.05 index points. The core index closed at 7,316.08 with a gain of 39.45 points (+0.54%) while S&P SL 20 index gained 17.85 points (+0.44%) to end at 4,096.74.

Today’s gains were driven by index-heavyweights such as John Keells Holdings (closed at LKR 229.50, +2.9%), Nestle Lanka (closed at LKR 2,265.00, +3.7%) and Carson Cumberbatch (closed at LKR 410.00, +2.5%).

Daily market turnover reached LKR 338mn, its lowest since May 2014. DFCC Bank emerged as the top contributor to the market turnover with LKR 50mn followed by John Keells Holdings (LKR 37mn) and Vallibel One (LKR 23mn). No crossings were recorded today.

Out of 246 counters traded 113 advanced, 76 slipped and 57 remained unchanged. Cash map notably increased to 60% from 28%. 09 counters reached 52wk low price.
Palm Garden Hotels rights were traded heavily on the renunciation date. Further shares of Access Engineering, John Keells Holdings and Union Bank also were among mostly traded counters.

Interim results of LB Finance was released today which reported a hefty profit growth of 106%YoY while Nation Lanka finance also recorded a massive profit growth (<9000%+) in December quarter earnings. LB finance counter closed at LKR 168.00, +3.7%. Nations Lanka Finance touched the 52wk low price level today but recovered to close at LKR 4.70, +2.2%. Foreign investors were net buyers today with a net inflow of LKR 42mn. Foreign participation was 14%. Net foreign inflows were witnessed in counters such as John Keells Holdings (LKR 26mn), Expolanka (LKR 6mn), and Sampath Bank (LKR 5mn) whereas net foreign outflow was mainly seen in Laugfs Gas (LKR 4mn). Asian Alliance Insurance informed that the company subscribed to 70mn shares of its fully owned subsidiary, Asian Alliance General Insurance Limited for a consideration of LKR 10.00 per share. Please note that NDB Capital Holdings was delisted from the Colombo Stock Exchange today. Lanka Securities Research