Stock Market Review

March, 18, 2014

Colombo Stock market ended days’ trading on a mixed note. The ASI declined marginally by 6.47 points (-0.11%) to closed at 5,907.64 while 20-scrip S&P SL 20 index gained 1.22 points (+0.04%) to closed at 3,214.64. Price depreciations in Nestle Lanka (closed at LKR 1,900.00, -4.6%), Commercial Leasing & Finance (closed at LKR 3.80, -5.0%), Trans Asia Hotels (closed at LKR 76.00, -7.5%) and Carsons Cumberbatch (closed at LKR 345.00, -1.4%) contributed negatively to the market performance.

The gainers outweighed the losers 104 to 74 while 60 counters remained unvaried. Cash map declined to 32% from 38%.

Daily market turnover soared to LKR 509mn after recording 5 year low turnover in previous trading session. John Keells Holdings made the largest contribution to the day’s turnover (LKR 274mn) while Commercial Bank & National Development Bank contributed LKR 31mn & LKR 29mn respectively. No crossings were recorded during the session.

Further Sampath Bank, Asiri Surgical, John Keells Holdings and Commercial Bank were heavily traded during the day and 16 securities reached 52 week low price levels.

Subsequent to the announcement made by Watawala Plantations regarding the termination of the agreement between Watawala Plantations & Estate Management Services Ltd for management services, share reached a high of LKR 10.30 and closed at LKR 10.20 (+8.5%). Following the dividend announcement of LKR 0.25, Union Bank share touched LKR 18.00 and closed at LKR 17.70 (+2.3).

Moreover Associated Motor Finance Company informed the public regarding the commencement of due diligence for purpose of financial sector consolidation as instructed by CBSL.

Foreign participation was 67% where foreign investors were net sellers with a net out flow of LKR 61mn. Net foreign outflows were seen in counters such as John Keells Holdings (LKR 60mn), United Motors (LKR 20mn) and Hemas Holdings (LKR 4mn) whilst net inflow was mainly seen in Textured Jersey (LKR 17mn).

Lanka Securities Research