Stock Market Review

May, 7, 2014

Colombo stock market managed to regain lost ground on Wednesday as both indices witnessed positive returns. Benchmark All share price index advanced by 26.47 points (+0.43%) to close at 6,252.60 while 20-script S&P SL advanced by 9.83 points (+0.29%) to close at 3,433.95. Price progression in counters such as Ceylon Tobacco (closed at LKR 1,099.50, +1.5%), Asiri Hospitals (closed at LKR 22.40, +5.2%) and John Keells Hotels (closed at LKR 14.10, +4.4%) contributed positively to the market performances.

Gainers outweighed the losers 121 to 86, while 56 counters remained unchanged. Cash map improved to 64% from 49%.

Daily market turnover was LKR 1.0bn. Several crossings were recorded in Seylan Bank (1.97mn shares at LKR 67.00 per share), John Keells Holdings (0.4mn shares at LKR 235.00 per share), Softlogic Holdings (2mn shares at LKR 12.00 per share) and Royal Ceramic (0.2mn shares at LKR 106.00 per share). The aggregate value of crossings was 27% of the total market turnover. John Keells Holdings (LKR 175mn) emerged as the top contributor to the market turnover followed by Royal Ceramic (LKR 154mn) and Seylan Bank (LKR 135mn).

Further shares of Grain Elevators, Softlogic Holdings and Three Acre Farms attracted heavy investor interest during the day.

Foreign investors were net buyers with a net inflow of LKR 270mn. Foreign participation was 27%. Foreign inflows were witnessed in counters such as John Keells Holdings (LKR 156mn), Seylan bank (LKR 128mn) and Hatton National Bank (LKR 30mn) while foreign outflow was mainly seen in Royal Ceramic (LKR 21mn).

Moreover, Richard Pieris 30mn rated unsecured redeemable debenture opened for subscriptions today and oversubscribed within hours of opening.

Lanka Securities Research