Colombo equities stretched gains for the third session driven by positive expectations on tomorrow’s mini budget. Benchmark index reached a high of 7,408.95 with a gain of 40.46 points (+0.55%) and closed lower at 7,395.29 (27.64 points, +0.38%). 20-script S&P SL index gained 13.29 points (+0.32%) to end at 4,143.72.

Core index bagged 118.66 points in the past three consecutive sessions (including today) with a gain of 1.6%. ASI gained 96.34 points or 1.3% during this month while S&P SL 20 index gained 54.58 points (+1.3%).

The gains were mainly fuelled by the counters such as Lion Brewery (closed at LKR 647.00, +5.2%), Hatton National Bank (closed at LKR 210.00, +2.4%) and Carson Cumberbatch (closed at LKR 419.90, +1.7%).

The market turnover recorded a two week high of LKR 1.3bn. John Keells Holdings (JKH) positioned at the top of the turnover list with a contribution of LKR 440mn underpinned by five crossings where 1.2mn shares changed hands at a price range of LKR 234.00 – 235.00 per share. Negotiated deals in JKH contributed 21% of the market turnover. Chevron Lubricants (LKR 148mn) and Hatton National Bank (LKR 72mn) positioned as the next best contributors.
Gainers surpassed the losers 143 to 69 while 42 counters remained unchanged. Cash map marginally declined to 54% from 57%. 05 counters reached 52wk high price levels while 06 counters touched 52wk low price levels.

Shares of Sierra Cables, Agstar and Piramal Glass were traded heavily during the session. Agstar and Piramal Glass reached 52wk high price levels of LKR 6.90 (+15%) and LKR 6.30 (+5%) respectively.

Foreign investors were net buyers with net inflow of LKR 371mn. Foreign participation was 41%. Net foreign inflows were seen in counters such as John Keells Holdings (LKR 328mn), Hatton National Bank (LKR 47mn) and DFCC Bank (LKR 37mn) whereas net foreign outflow was mainly seen in Distilleries (LKR 22mn).
Meanwhile, at today’s weekly primary T-bill auction, all T-bill yields remained unchanged. Accordingly, 12 month yield is at 6.05% while 3 month yield and 6 month yield is at 5.80% and 5.90% respectively. At the bill auction LKR 10bn worth of T-bills were issued while it was oversubscribed 3.3 times and LKR 13bn were accepted.

Overseas Realty declared its first and final dividend of LKR 1.00 per share (DY – 3.6%). The counter closed higher today at LKR 27.50 with a gain of 2.6%.

Bank of Ceylon of Sri Lanka announced that Mr. Ronald C. Perera has been appointed as the Chairman by Minister of Finance, Ravi Karunanayake.

Lanka Securities Research