Colombo shares concluded weekly operations on Friday recording a 23-month high turnover of LKR 7.15bn. Approx. 586mn shares of Expolanka changed hands at LKR 10.70 per share at the beginning of today’s trading session which also resulted to a 29-month high daily volume of 630mn shares. The crossing was 88% of the daily market turnover.

According to the announcement made to CSE principle shareholders of Expolanka have disposed a total of 30% of the issued share capital to S.G Holdings Limited which is a holding company for the Sagawa Group, a leading freight & logistic company in Japan. The company further announced that S.G Holding will make a mandatory offer.

Both benchmark indices managed to retain the positive momentum as All share Price Index gained 9.14 points (+0.15%) to close at 6,284.87 and S&P SL 20 index gained 10.50 points (+0.30%) to close at 3,457.26. Price appreciation in counters such as Bukit Darah (closed at LKR 650.10, +3.2%), Asian Hotels & Properties (closed at LKR 68.50, +1.9%) and Ceylinco Insurance (closed at LKR 1,350.00, +3.5%) contributed positively to the index performance.

Gainers surpass the losers 141 to 58, while 66 equities remained unchanged. Cash map marginally improved to 55% from 54%.

Expolanka (LKR 6.5bn) emerged as the top contributor to the market turnover followed by John Keells Holdings (LKR 78mn) and Lanka IOC (LKR 77mn). Moreover, several negotiated deals were recorded in John Keells Holdings (0.2mn shares at LKR 235.00 per share) and Tokyo Cement (0.8mn shares at LKR 40.00 per share).

Meanwhile shares of Expolanka, Merchant Bank of Sri Lanka and Lanka IOC traded heavily during today’s trading session.

Foreign investors were further continued to be net buyers for the fifth consecutive day with net inflow of LKR 6.28bn. Foreign participation was 46% for the session. Foreign inflows were seen in Expolanka (LKR 5.9bn), John Keells Holdings (LKR 76mn) and Commercial Bank (LKR 21mn) while foreign outflow was mainly seen in Merchant Bank of Sri Lanka (LKR 7.5mn). Additionally, year to date (YTD) foreign outflows were decreased to LKR 527mn from LKR 6.8bn with the major foreign inflow recorded in Expolanka today.

Dipped Products declared a Final dividend of LKR 3.00 per share (closed at LKR 97.00, +2%) and Ceylon Hospitals (non-voting share closed at LKR 78.00, +0.8%) declared an interim dividend of LKR 2.00 per share yesterday and closed with higher returns in today’s trading session.

Further, Malwatte Plantation (First & Final dividend), Ceylon Tobacco (First Interim) and Alumex (Final dividend) declared dividends of LKR 0.10, LKR 10.80 and LKR 0.25 per share respectively.

Moreover, Kotagala Plantations made an announcement to CSE informing that they obtained the approval to raise LKR 1.0bn through 10mn rated, secured, redeemable debentures. The debentures will open for the subscription on 22^nd May 2014.

Lanka Securities Research