Stock Market Review

May, 23, 2014

Equity Market concluded its weekly operations on Friday in negative territory where indices closed with negative returns. Core index lost 9.86 points (-0.16%) to end at 6,280.31 and while 20-scrip S&P SL index lost 5.62 points (-0.16%) to end at 3,459.43. Price declines in index heavy counters such as Ceylon Tobacco (closed at LKR 1,083.00, -1.9%), Asian Hotels & Properties (closed at LKR 70.00, -3.2%) and Distilleries (closed at LKR 207.50, -1.2%) contributed adversely to the index performances.

Gainers surpass the losers 121 to 81, while 66 counters remained unchanged. Cash map improved from 46% to 74%.

Daily market turnover reached LKR 804mn. John Keells Holdings (LKR 289mn) emerged as the top contributor to the market turnover followed by Lanka IOC (LKR 72mn) and Commercial Bank (LKR 66mn). Only a single crossing was recorded in Commercial Bank, approx. 0.2mn shares changed hands at LKR 126.50 per share.

Meanwhile shares of Lanka IOC, Kelani Tyre, George Steuart Finance and Seylan Development were among mostly traded stocks.

Foreign investors continued to be net buyers for the third consecutive day with a net inflow of LKR 297mn. Foreign participation accounted for 33% of the market activity. Foreign inflows were seen in John Keells Holdings (LKR 282mn), Ceylon Tobacco (LKR 12mn) and Lanka IOC (LKR 5mn) while foreign outflow was mainly seen Aitken Spence (LKR 4mn).

Moreover, Diesel & Motor Engineering and Sunshine Holdings declared final dividend of LKR 10.00 and 0.95 per share respectively while York Arcade Holdings declared a first and final dividend of LKR 0.40 per share.

Lanka Securities Research