Stock Market Review

May, 21, 2014

Colombo stock market ended lower today with both indices closing with negative returns. Main bourse declined by 32.29 index points (-0.51%) to end at 6,289.32 while 20-scrip S&P SL index declined by 14.26 index points (-0.41%) to close at 3,456.84. Price depreciations in counters such as Sri Lanka Telecom (closed at LKR 47.00, -2.7%), Commercial Bank (closed at LKR 126.50, -1.2%) and Ceylinco Insurance (closed at LKR 1,300.00, -4.4%) contributed negatively to the index performance.

Daily market turnover reached LKR 944mn with support of several crossings recorded in United Motors (3.26mn shares at LKR 119.60) and Hatton National Bank (0.61mn shares at LKR 157.00). Accordingly United Motors emerged as the top contributor to the turnover with LKR 391mn followed by Hatton National Bank (LKR 95mn) and John Keells Holdings (LKR 74mn). The crossings accounted for 51% of the turnover.

Losers outweighed gainers 131 to 76, while 58 equities remained unchanged. 10 counters touched 52wk high prices and 5 counters reached 52wk low price levels. Cash map improved to 46% from 38%.

Along with the dividend announcement (LKR 0.80 per share), Textured Jersey attracted heavy investor participation during the session. Further Lanka Century, Panasian Power and East West Properties attracted investor attention.

Foreign investors were net buyers with net inflow of LKR 496mn worth of stocks. Foreign participation was 45%. Foreign inflows were witnessed in stocks such as United Motors (LKR 389mn), John Keells Holdings (LKR 40mn), Distilleries Company (LKR 37mn) while foreign outflow was mainly seen Commercial Bank (LKR 7mn).

Meanwhile at the weekly primary auction held today, yield on 6 month treasury bills dropped by 1bps to 6.75% while 3 month and 12 month treasury bill yields remained the same.

Lanka Securities Research