Colombo stock market swung between gains and losses on Friday to wrap the weekly operations on lower note as the government unveiled the much anticipated maiden budget for the fiscal year 2016. Benchmark index lost 2.74 index points or 0.04% to end at 7,017.44 while 20-scrip S&P SL index shed 7.14 index points (-0.19%) to close at 3,774.11.

Blue-chips namely Aitken Spence (closed at LKR 93.50, 2.1%), National Development Bank (closed at LKR 214.50, 1.7%) and Commercial Leasing & Finance (closed at LKR 4.00, 2.4%) drove the market performance to the negative territory.

Daily market turnover was LKR 448mn. John Keells Holdings emerged as the top contributor to the turnover with LKR 66mn followed by Hayleys (LKR 35mn), Dipped Products (LKR 31mn) and National Development Bank (LKR 29mn). Single crossing was recorded in Hayleys (0.01mn shares at LKR 320.00).

Despite the negative investor sentiment, out of 272 counters, 113 advanced, 77 slipped while 52 counters remained unchanged. Cash map declined from 64% to 62%. 17 counters touched 52wk low prices while only Textured Jersey (LKR 36.00) and Kelani Cables (LKR 125.00) managed to reach 52wk high price levels.

Following the announcement of right issue dates of Waskaduwa Beach Resort, both counters, namely Waskaduwa Beach Resort and Kalpitiya Beach Resort attracted heavy investor preference. Waskaduwa Beach Resort closed at LKR 6.50, +22.6% and Kalpitiya Beach Resort ended the session at LKR 3.30, +17.9%.

Textured Jersey, Dankotuwa Porcelain rights and National Development Bank were among heavily traded counters. Further, National Development Bank declined to a 52 week low of LKR 213.70.

Meanwhile, United Motors and Access Engineering declared interim dividends of LKR 3.00 per share and LKR 0.50 per share respectively. Moreover, People’s Leasing & Finance announced that its fully owned subsidiary, People’s Insurance Limited has received approval to list 200mn ordinary shares on the CSE.

Foreign investors were net buyers with a marginal net foreign inflow of LKR 8mn. Foreign participation was 26%. Net foreign inflows were seen in Asiri Hospital Holdings (LKR 16mn), Hatton National Bank non-voting (LKR 15mn), Seylan Bank (LKR 10mn) while Net foreign outflow was mainly seen in National Development Bank (26mn).

During the week ASI advanced by 15.63 points or 0.22% while S&P SL 20 index dropped by 12.89 points or 0.34%. Samson International (12%), Citrus Kalpitiya (10%), Kelani Cables (7%) were among the top gainers of the week while Bukit Darah (-6%), HNB Assurance (-5%), Sunshine Holdings (-5%) were among the top losers.

The average weekly turnover declined notably by 11% to LKR 844mn. National Development Bank topped the weekly turnover list with LKR 614mn followed by Asiri Hospital Holdings (LKR 371mn) and Dialog Axiata (LKR 344mn).

The foreign investors stood on the buying side for the week recording a net foreign inflow of LKR 9mn. Foreign activity was at 27%. Net foreign inflows were mainly seen in Hatton National Bank (LKR 51), John Keells Holdings (LKR 46mn), Ceylon Tobacco (LKR 35mn) while net foreign outflows were mainly seen in National Development Bank (LKR 60mn) and Commercial Bank (LKR 59mn). Subsequent to this week’s net foreign inflow, year-to-date net foreign outflow remained at LKR 3.7bn.

(Lanka Securities Research)