Colombo stock market shed gains collected in prior sessions on Thursday amid the presentation of the mini budget to the parliament. The new government’s “Robin-Hood style” fiscal policies in the interim budget, target to improve the life standards of middle & low class society ahead of the general election and it was mostly focused on delivering the undertakings given in the 100-day work plan.

During the today’s trading session, All share index declined by 18.78 index points (-0.25%) to end at 7,376.51 while 20-scrip S&P SL20 index slipped by 9.02 index points or 0.22% to close at 4,134.70.

Price declines were led by large-cap counters such as Cargills (Ceylon) (closed at LKR 150.00, -2.5%), Aitken Spence (closed at LKR 106.00, -0.9%) & Ceylon Tobacco Company (closed at LKR 1,100.00, -0.1%) ahead of the budget proposal to impose a super gain tax (one-off) of 25% on companies which exceed profit of LKR 2bn.

Daily market turnover was LKR 1.3bn. Commercial Bank topped the turnover list with LKR 448mn underpinned by several crossings totaling to 2.3mn shares at LKR 180.00. Crossings represented 34% of the total turnover. John Keells Holdings and Sunshine Holdings were next best contributors to the turnover with LKR 133mn & LKR 67mn respectively.

Losers outweighed the gainers 98 to 82, while 52 counters remained unchanged. Cash map marginally decline to 53% from 54%. 4 counters reached 52wk high prices while 6 counters touched 52wk low price levels.
Piramal Glass was the most favored counter and it reached 52wk high price of LKR 6.50. Counter closed unchanged at LKR 6.30. Further, John Keells Holdings, Ascot Holdings & Sierra Cables were among heavily traded counters.

John Keells Holdings declined sharply in the latter part of the trading session amid the cabinet decision to prohibit the authorization given to establish casinos in its Waterfront Properties project. Meanwhile company declared second interim dividend of LKR 1.00 per share during the trading session. Counter closed at LKR 225.00, down by 3.7%. Subsequent to the drop of John Keells Holdings voting share, warrant 22 & warrant 23 declined by 5.9% & 6.0% to LKR 57.60 & LKR 60.00 respectively.

Foreign investors were net buyers with net inflow of LKR 122mn. Foreign participation for the day was 42%. Net foreign inflows were seen in John Keells Holdings (LKR 43mn), National Development Bank (LKR 33mn), Sampath Bank (LKR 26mn) while net foreign outflow was mainly seen in Commercial Bank (LKR 16mn).

As per the announcement made, Lanka Orix Finance debentures will be listed on 02nd February 2015.

Lanka Securities Research