Colombo bourse wrapped the weekly operations on Friday recording a 4 week high turnover of LKR 3.8bn. The turnover was driven by the significant crossings recorded in Nations Trust Bank where 22.9mn (9.9% of the issued capital of NTB) shares changed hands at LKR 95.00 per share. The value of NTB crossings was LKR 2.2bn and it represented 57% of the total market turnover. The seller was DFCC Bank and with this transaction the Bank realized a capital gain of LKR 842mn (LKR 3.18 per DFCC share). DFCC Bank closed at LKR 229.00, +3.5% and Nations Trust Bank closed at LKR 93.20, +3.7%.

All Share Price Index gained 32.40 points or 0.44% to end at 7,326.81 and S&P SL 20 index gained 35.96 points or 0.89% to end at 4,087.38. During the week core index gained 113.33 points (+1.6%) while S&P SL 20 index gained 83.59 points (2.1%).

The todays’ gains were mainly led by Commercial Bank (closed at LKR 166.00, +2.5%), John Keells Holdings (closed at LKR 256.00, +0.4%) and Hemas Holdings (closed at LKR 70.00, +3.2%). Positive movements in sectors such as Trading, Oil Palms and Motors affected favorably to the market performance.

Daily market turnover was LKR 3.8bn. Nations Trust Bank emerged as the top contributor to the market turnover with LKR 2.2bn followed by Dialog Axiata (LKR 282mn) and John Keells Holdings (LKR 244mn).

Several other crossings were recorded in Dialog Axiata (11.6mn shares at LKR 12.50 per share), John Keells Holdings (0.4mn shares at LKR 256.00 per share), People’s leasing (2.5mn shares at LKR 22.00-22.10 per share) and National Development Bank (0.2mn shares at LKR 240.00 per share). The aggregate value of total crossings represented 66% of the market turnover.

Most of banking sector counters such as Hatton National Bank, Seylan Bank, Commercial Bank, National Development Bank, Nations Trust Bank and Pan Asia Bank appreciated during the session while Sampath Bank, Sanasa Development Bank and HDFC Bank dropped.

Out of 268 counters traded 126 advanced, 96 declined and 46 counters remained unchanged. Cash map declined to 47% from 75%.

Meanwhile shares of People’s Leasing, Serendib Engineering Group and ACME rights attracted heavy investor interest during the session.

Foreign investors were net buyers with a net inflow of LKR 1.7bn worth of equities. Foreign participation was 28%. Net foreign inflows were seen in Nations Trust Bank (LKR 1.2bn), Dialog Axiata (LKR 258mn) and Hemas Holdings (LKR 49mn) while net foreign outflow was mainly seen in Chevron Lubricants (LKR 12mn).

Additionally, foreign investors were also net buyers for the week with a net foreign inflow of LKR 4bn while foreign participation was 31%. Net foreign inflow was mainly seen in John Keells Holdings (LKR 1.5bn) whereas net foreign outflow was mainly seen in Nestle Lanka (LKR 180mn). Accordingly year to date net foreign inflow stood at LKR 14.8bn.

During the week Colombo bourse recorded an average turnover of LKR 2.2bn. Subsequent to the today’s transaction Nations Trust Bank emerged as the top contributor for the week with LKR 2.2bn followed by John Keells Holdings (LKR 2bn).

Meanwhile, Cargills announced that they have concluded the disposal of the entire shareholding in Millers Brewery Ltd. to Lion Brewery and its subsidiary Pearl Spring (Pvt) Ltd for a total consideration of LKR 5.15bn.

Lee Hedges made an announcement to CSE informing that the company entered into a lease agreement with the Urban Development Authority to lease a property in Colombo 03 for a period of 99 years at a total cost of LKR 522mn.

Lanka Securities Research