Stock Market Review

March, 26, 2014

Colombo shares concluded with mixed results on Wednesday where main share index marginally declined despite relatively active trading session. All Share Price Index dropped 1.81 index points (-0.03%) to close at 5,950.97 while 20-scrip S&P SL index gained marginally by 4.56 index points (+0.14%) to close at 3,261.05. Price depreciations in index heavy counters such as Ceylon Tobacco (closed at LKR 1,083.00, -1.4%), Carson Cumberbatch (closed at LKR 360.00, -2.6%) & C T Holdings (closed at LKR 136.00, -2.9%) contributed adversely to the market performance.

Daily market turnover reached LKR 762mn with the support of several crossing recorded in Ceylon Tobacco (0.11mn shares at LKR 1,080.00) and Lanka Tiles (0.40mn shares at LKR 75.00). Interestingly, negotiated deals were recorded after four trading days and these accounted for 19% of the turnover. John Keells Holdings (LKR 246mn) emerged as the top contributor to the market turnover. Further Ceylon Tobacco (LKR 117mn) and Aitken Spence (LKR 72mn) made the next best contributions to the daily turnover.

Moreover shares of Pirmal Glass, George Steuart Finance and John Keells Holdings were traded heavily during session.

Gainers outweighed the losers 92 to 89, while 66 counters remained unchanged. Cash map increased to 35% from 31%. 14 counters reached 52wk low prices while 3 stocks reached 52wk high price levels today.

Meanwhile in today’s T-bill auction, 3-month and 6-month treasury yields eased marginally while the 12-month yield was unchanged at 7.05%. The 3-month and 6-month rates dropped to 6.65% and 6.82% respectively.

Foreign participation for the day was 53% of the total market activity and foreign investors were net sellers of LKR 41mn worth of shares. Net foreign outflows were reported in counters such as John Keells Holdings (LKR 99.1mn), Commercial Bank nonvoting (LKR 8.3mn) & Aitken Spence (LKR 7.5mn).

Lanka Securities Research