Colombo stock market concluded weekly operations on optimistic note to stretch the winning streak for the third consecutive day amid the higher market activity following the premier’s statement on economic reforms.

All share index advanced by 0.7% or 48.85 index points to end at 7,066.24, recording the highest intra-day gain after 8 weeks. 20-scrip S&P SL index bagged 35.19 index points or 0.93% to close at 3,829.30.

Large cap, John Keells Holdings (closed at 186.40, +2.7%) directed the index performance to a 5-day high along with Sri Lanka Telecom (closed at LKR 48.40, +3.2%), Nestle Lanka (closed at LKR 2,100.00, +2.4%) and Hemas Holdings (closed at LKR 87.40, +2.1%). John Keells Holdings  was the most active counter of the day and emerged as the top contributor to the turnover with LKR 378mn.

Daily market turnover was LKR 1.7bn boosted by hefty crossings which contributed to 45% of the total turnover. Off-the-floor dealings were witnessed in Access Engineering (4.4mn shares at LKR 23.00), Textured Jersey (3.0mn shares at LKR 33.40), Hatton National Bank (1.5mn shares at LKR 215.00), Aitken Spence (1.1mn shares at LKR 92.30), Commercial Bank (0.6mn shares at LKR 156.00) and Dipped Products (0.5mn shares at LKR 120.00).

Accordingly, Hatton National Bank (LKR 326mn), Access Engineering (LKR 169mn), Commercial Bank (LKR 137mn) and Textured Jersey (LKR 137mn) were next best contributors to the turnover.

Reflecting the optimistic investor momentum, out 250 scripts, 125 advanced, 75 slipped while 50 scripts remained unchanged. Cash map declined from 56% to 46%. 10 counters touched 52wk low prices while 04 counters managed to reach 52wk high price levels.

Access Engineering was among the mostly traded stocks, subsequent to the favorable profit growth reported in interim financials. Stock advanced to LKR 23.60 but closed below at LKR 23.00 (-1.3%). Despite the higher quarterly profit in Royal Ceramic and Piramal Glass, both counters closed on flat note. Royal Ceramic end at LKR 112.00 while Piramal Glass closed the session at LKR 6.30, +1.6%.

Remarks on GSP+ by Prime Minister yesterday lifted expectations of textile industry which was reflected through price inclines in both Textured Jersey and Hayleys Fabrics. Textured Jersey advanced to a 52-wk high price of LKR 34.80 but closed at LKR 34.30, +0.9% while Hayleys Fabrics end at LKR 22.30, +1.4%. As a result of Prime Minister’s statement on divestment of some of the non-strategic state ventures, Lanka Hospitals was on the spot light today. In the opening hours counter advanced to a 52wk high of LKR 58.00 but closed lower at LKR 54.90, +1.7%.

Foreign investors were net sellers with a net foreign outflow of LKR 121mn. Foreign participation was 42%. Net foreign outflows were seen in Access Engineering (LKR 160mn), Commercial Bank (LKR 134mn), Aitken Spence (LKR 104mn) while net inflow was mainly seen in John Keells Holdings (LKR 211mn).

During the week benchmark index inclined by 17.42 points or 0.25% while S&P SL 20 index gained 21.62 points or 0.57%. Hunas Falls Hotels (+19%), Overseas Realty (+8%) and Hemas Holdings (+7%) were among the top gainers of the week while Dipped Prodcuts (-12%), Sathosa Motors (-10%) and Ceylon Grain Elevators (-6%) were among the top losers.

The average weekly turnover decreased by 30% to LKR 778mn. John Keells Holdings topped the weekly turnover list with LKR 575mn followed by Hatton National Bank (LKR 358mn) and Access Engineering (LKR 274mn).

The foreign investors stood on the selling side for the second consecutive week recording a net foreign outflow of LKR 133mn. Foreign activity declined from 55% to 30%. Net foreign outflows were mainly seen in Access Engineering (LKR 258mn), Commercial Bank (LKR 214mn), Aitken Spence (LKR 107mn) while net foreign inflows were mainly seen in John Keells Holdings (LKR 329mn) and Textured Jersey (LKR 42mn). Subsequent to this week’s net foreign outflow, year-to-date net foreign outflow inclined from LKR 3.7bn to LKR 3.8bn.

(Lanka Securities Research)