Colombo bourse witnessed notable returns on Wednesday where main index advanced for the fifth consecutive day. ASI index bagged 38.78 index points or 0.54% to end at 7,265.90 while S&P SL20 index gained 21.33 index points (+0.53%) to close at 4,029.43. Price inclines in counters such as Lanka IOC, Lanka Orix Leasing Company & Hatton National Bank contributed positively to the index performance.

Daily market turnover was LKR 2.2bn. John Keells Holdings topped the turnover list with LKR 632mn underpinned by several crossings of 0.97mn shares at LKR 248.50-249.90. Turnover from John Keells Holdings accounted for 29% of the total turnover.

People’s Leasing & Finance and Dialog Axiata were among the next top contributors the total turnover with LKR 382mn & LKR 184mn respectively.

Several off-the-floor dealings were recorded in Commercial Bank (closed at LKR 0.17mn shares at LKR 160.00), Ceylon Hospitals (0.5mn shares at LKR 110.00), Overseas Realty (2.0mn shares at LKR 25.70), People’s Leasing Finance (14.0mn shares at LKR 21.00-21.10) & Dialog Axiata (11.7mn shares at LKR 12.50). Aggregate value of crossings represented 37% of the total turnover.

Odel & Lanka IOC attracted heavy investor preference during the session. Both counters reached 52wk high prices of LKR 28.00 & LKR 52.00 and closed at LKR 26.70 (+10.8%) and LKR 51.50 (+5.1%) respectively. Further rights of Acme Printing & Packaging was among most favored counters and stock closed at LKR 1.70 (+>100%).

Most of the banks such as Hatton National Bank (closed at LKR 193.00, +1.3%), DFCC Bank (closed at LKR 218.00, +1.2%), Commercial Bank (closed at LKR 160.20, +0.8%) and Sampath Bank (closed at LKR 237.50, 0.2%), Sanasa Development Bank (closed at LKR 95.20, +0.6%), Nations Trust Bank (closed at LKR 90.00, +1.1%) and Pan Asia Banking Corporation (closed at LKR 23.30, +1.8%) advanced during the session.

Subsequent to the release of interim financial statement of People’s Leasing & Finance, counter closed at LKR 21.30 (+2.4%). Further Softlogic Capital advanced by 4.6% during the session to closed at LKR 45.50 amid positive performance in June-September quarter.

Positive movements in sectors such as Banks Finance & Insurance, Footwear & Textiles and Trading contributed favorably to the index performance.

Following the announcement of third interim dividend of LKR 5.50 per share of Chevron Lubricants, counter reached LKR 342.50 (+1.8%).

Out of 260 counters, 157 advanced, 52 declined and 51 counters remained unchanged. Cash map declined to 55% from 65%. 9 counters reached 52wk high prices while 5 counters touched 52wk low price levels.

Foreign investors closed the day as net buyers of LKR 580mn worth of equities. Foreign participation was 31%. Net foreign inflows were seen in counters such as John Keells Holdings (LKR 349mn), Dialog Axiata (LKR 118mn), Overseas Realty (LKR 52mn) while net foreign outflow was mainly seen in Lanka IOC (LKR 9mn).

At today’s weekly primary T-bill auction, 12 month yield remained unvaried at 6.00% while 3 month & 6 month bills were not offered by the CBSL. The T-bill auction for LKR 10bn was oversubscribed by 3.2 times.

Lanka Securities Research