Stock Market Review

March, 21, 2014

On Friday, the stocks closed higher, continuing the positive momentum where All Share Price Index increased by 23.31 points (+0.39%) to end at 5,937.87 and S&P SL 20 index increased by 14.11 (+0.44%) to end at 3,246.02. Price appreciations in counters such as Nestle (closed at LKR 1,995.00, +2.2%), Finlays Colombo (closed at LKR 306.00, +21.1%) and Commercial Bank (closed at LKR 119.90, +1.9%) contributed favorably to the index performance.

Daily market turnover was LKR 251mn. Tokyo Cement (LKR 22.0mn) was the top contributor to the market turnover followed by Union Bank (LKR 16.4mn) and Chilaw Finance (LKR 16.2mn).

Gainers outweighed the losers 133 to 61, while 50 counters remained unchanged. Cash map improved to 69% from 55%.

Moreover Union Bank, The Finance non-voting and Chilaw Finance managed to gather heavy investor interest during the day.

Foreign participation was 12%. Foreign investors were net sellers with a net out flow of LKR 3mn. Foreign out flows were seen in Haycarb (LKR 8.9mn), Distilleries (LKR 6.9mn) and Commercial Bank non-voting (LKR 2.3mn) whilst net inflow was mainly seen in Commercial Bank – voting (LKR 9.6mn).

Further, Browns Investments (BIL) made an announcement to CSE informing that they have fully acquired LOLC Leisure by purchasing the balance stake held by Lanka Orix Leasing Company (LOLC) for a consideration of LKR 2.8 billion. With this acquisition BIL, which is a subsidiary of LOLC, will become one of the largest leisure sector operators having nearly 1,000 rooms under its management. Shares of BIL closed at LKR 2.30,+4.6% while shares of LOLC closed at LKR 75.00,-1.3%.

Lanka Securities Research