Colombo bourse closed higher on Tuesday driven by gains in blue chips amid notable net foreign outflow. Core index bagged 13.98 index points or 0.19% to close at 7,252.14 while 20-scrip S&P SL index gained 19.30 index points or 0.48% to end at 4,038.30. Price increases in counters such as John Keells Holdings (closed at LKR 255.00, +1.6%), Dialog Axiata (closed at LKR 11.50, +1.8%) & Hatton National Bank (closed at LKR 192.70, +3.6%) contributed favorably to the index performance.

Daily market turnover reached 18 day high of LKR 4.3bn. John Keells Holdings top the turnover list with LKR 2.0bn, supported by off-the-floor dealings of 7.1mn shares at price of LKR 251.00 - LKR 251.10. JKH crossings accounted for 41% total turnover. Commercial Bank (LKR 368mn) & Chevron Lubricants (LKR 172mn) were among top contributors to the turnover.

Further several crossings were recorded in Chevron Lubricants (0.5mn shares at LKR 335.00), Commercial Bank (1.0mn shares at LKR 156.00), Hatton National Bank (0.2mn shares at LKR 190.00) & Overseas Realty (1.0mn shares at LKR 26.00). Aggregate crossings represented 51% of the total turnover.

Out of 267 counters, 109 advanced, 98 slipped while 60 remained unchanged. Cash map improved to 44% from 34%. 25 counters reached 52wk high prices while 4 counters touched 52wk low price level.

Finance Companies such as Commercial Credit Finance, Singer Finance, Orient Finance & Arpico Finance reached 52wk high price levels.

First Capital Holding, Dunamis Capital & Janashakthi Insurance attracted heavy investor participation. All three counters managed to reach 52wk high prices but closed lower at LKR 56.00 (-0.5%), LKR 37.50 (-3.6%) & LKR 23.60 (-2.1%) respectively.

Entrust Securities, Softlogic Capital & Access Engineering were among heavily traded counters.

Further Colombo City Holdings announced that the company has disposed its property in Colombo 04 for a consideration of approx. LKR 207mn.

Foreign investors were net sellers with net outflow of LKR 1.8bn. Foreign participation was 49%. Net foreign outflows were seen in John Keells Holdings (LKR 1.8bn), John Keells Holdings warrant 0023 (LKR 142mn) & John Keells Holdings warrant 0022 (LKR 94mn) while net foreign inflow was mainly seen in National Development Bank (LKR 68mn).

During the two days of the week, market witnessed net foreign outflow of LKR 3.7bn which contracted Year-to-Date net foreign inflow to LKR 7.0bn.

Moreover, as per the Colombo Consumers’ Price index (CCPI) released today by the statistics department, the inflation remained at 3.5% in September whereas annual average inflation declined to 4.2% (4.5% in August).

Lanka Securities Research