Stock Market Review

May, 22, 2014

Colombo bourse closed in opposite directions on Monday, as All share price index gained 0.85 points or 0.01% to end at 6,290.17 while S&P SL 20 index lost 0.79 points or 0.02% to end at 3,465.05. Price advancements in counters such as Sri Lanka Telecom (closed at LKR 47.90, +1.9%), Trans Asia (closed at LKR 93.90, +4.1%) and Commercial Leasing & Finance (closed at LKR 3.90, +2.6%) contributed positively to the core index performance whereas price depreciations in John Keells Holdings (closed at LKR 231.00, -1.1%), Dialog Axiata (closed at LKR 9.70, -1%) and Nestle Lanka (closed at LKR 1,960.00, -0.1%) contributed adversely to the S&P SL 20 index performance.

Losers exceeded the gainers 104 to 85, while 75 equities remained unchanged. Cash map remain unchanged at 46%.

Daily market turnover was LKR 611mn. Distilleries (LKR 103mn) topped the turnover list underpinned by the negotiated deal of 0.3mn shares changed hands at LKR 210.00 per share. Commercial Bank (LKR 87mn) and National Development Bank (LKR 39mn) recorded next best contributions to the market turnover.  Several off-the-floor deals were recorded in Property Development (0.3mn shares at LKR 88.00 per share), Commercial Bank (0.3mn shares at LKR 126.50 per share) and National Development Bank (0.1mn shares at LKR 199.00 per share). The aggregate value of crossings represented 25% of the turnover.

Meanwhile shares in Janashakthi Insurance, Kelani Tyres and Colombo Land & Development attracted heavy investor interest during the day.

Foreign investors were net buyers with a net inflow of LKR 151mn while foreign participation was accounted for 34%. Foreign inflows were evidenced in counters such as Distilleries (LKR 76mn), National Development Bank (LKR 34mn) and John Keells Holdings warrant 0023 (LKR 9mn) while foreign outflow was mainly seen in Janashakthi Insurance (LKR 9mn).

Further, the issue of 5mn (at LKR 100.00 each) rated, unsecured, redeemable debentures of Kotagala Plantations was oversubscribed within hours of opening.

Moreover, Taprobane Holdings announced a voluntary offer to purchase voting shares of Lanka Century Investments (GREG.N) at a price of LKR 11.00 per share. GREG closed at LKR 10.80,-0.9%.

Lanka Securities Research