Market closed in opposite directions on Tuesday as core index gained 6.04 points or 0.08% to end at 7,227.12 while S&P SL 20 index lost 6.12 points or 0.15% to end at 4,008.10. Price improvements in counters such as Ceylon Tobacco (closed at LKR 1,150.00, +1.1%), Ceylon Cold Stores (closed at LKR 265.00, +6.3%) and Lanka Orix Leasing Company (closed at LKR 89.80, +5.8%) contributed positively to the main index while price declines in DFCC Bank (closed at 215.20, -1.5%) and Commercial Bank (closed at LKR 159.00, -0.5%) contributed adversely to the S&P Index performance.

Positive movements in sectors such as Footwear & Textiles, Construction & Engineering and Beverage Food & Tobacco affected to the index performance.

Daily market turnover reached 1.7bn underpinned by several crossings recorded in John Keells Holdings (1.9mn shares at the price range of LKR 249.90-250.00), Chevron Lubricants (0.4mn shares at LKR 336.50 per share), Seylan Bank non-voting (1mn shares at LKR 52.40 per share), Access Engineering (1mn shares at LKR 31.00 per share) and Overseas Realty (1mn shares at LKR 25.70 per share). The crossings accounted for 44% of the total market turnover.

Accordingly John Keells Holdings positioned at the top of the turnover list with LKR 767mn followed by Chevron Lubricant (LKR 149mn) and Aitken Spence (LKR 77mn).

Out of 271 counter traded, 107 advanced, 99 dropped and 65 equities remained unchanged. 10 counters touched 52wh high price levels while 5 counters reached 52wk low price levels. Cash map improved to 65% from 55%.

Shares of Bogala Graphite, Vallibel Power and Browns Investments attracted heavy investor interest during the session. Subsequent to the interim dividend announcement of LKR 0.95 per share, the shares of Watawala Plantations were also traded heavily. Counter closed at LKR 20.20, +1%.

Meanwhile, Chevron Lubricants declared the third interim dividend of LKR 5.50 per share. So far the company has declared a dividend of LKR 14.50 for FY2014.

Foreign investors were net buyers with net inflow of LKR 935mn worth of equities. Foreign participation was 42%. Net foreign inflows were seen in John Keells Holdings (LKR 755mn), Tokyo Cement non-voting (LKR 45mn) and Aitken Spence (LKR 37mn) while net foreign outflow was mainly seen in Hemas Power (LKR 4mn).

Lanka Securities Research