Colombo bourse managed to hold ground for the second consecutive day despite the weak economic growth and rising treasury yields. As per the data released by the Census and Statistics department, Sri Lanka’s economy grew at a slower pace of 4.8% in 3Q2015 which lags far behind the growth of 6.4% and 6.7% reported in the first two quarters of 2015.
Reiterating the sluggish performance, ASI increased by mere 12.74 index points or 0.19% to end the session at 6,833.51 while S&P SL 20 index shed 1.63 index points (-0.05%) to close at 3,597.07.
Today’s gains were driven by blue-chips namely Dialog Axiata (closed at LKR 10.60, +1.0%), Hemas Holdings (closed at LKR 90.00, +3.3%) and CT Holdings (closed at LKR 140.00, +3.7%). However, price declines in Nestle Lanka (closed at LKR 2,189.70, -0.5%) and DFCC Bank (closed at LKR 161.10, -1.7%) pinned the S&P SL20 index performance to the negative territory.
Daily market turnover was LKR 603mn. Browns Investments emerged as the top contributor to the turnover with LKR 366mn underpinned by a single off-the-floor deal of 244mn shares at LKR 1.50 per share. Stock accounted for 61% of the total turnover. Access Engineering (LKR 23mn), Nations Trust Bank (LKR 22mn) and Commercial Bank (LKR 20mn) were next best contributors to the turnover.
Single crossing was recorded in Nations Trust Bank where 0.25mn shares changed hands at LKR 86.00.
Gainers outweighed the losers, 129 to 52 while 53 counters remained unchanged. Cash map marginally dipped from 68% to 61%. 28 counters declined to 52wk low price levels while only Keells Food Products and Kelsey Developments advanced to 52wk high prices of LKR 205.00, +3.6% and LKR 65.00, +3.0% respectively.
People’s Insurance Limited, the last IPO of the year, opened for subscription today and was oversubscribed within hours of opening. Accordingly, the issue closed today as per the prospectus. The company intended to raise LKR 750mn by issuing 50mn shares at LKR 15.00 per share.
Moreover, according to CSE announcement, S&P Dow Jones Indices has changed constituents of S&P SL 20 index at the 2015 annual index rebalance. 04 Constituents, namely, Bukit Darah, Carson Cumberbatch, Lion Brewery and Sri Lanka Telecom will be removed and Asiri Hospital Holdings, Ceylinco Insurance, Ceylon Cold Stores and Hemas Holdings will replace the empty slots with effect from 21st December 2015.
Access Engineering, Adam Investments, Dankotuwa Porcelain and Textured Jersey were among heavily traded scripts. Subsequent to the dividend announcements, Chevron Lubricants (LKR 351.50, +0.4%) and People’s Leasing (LKR 22.60, +2.3%) counters ended the session with positive gains.
Foreign investors closed the session on buying side with a net foreign inflow of LKR 16mn. Foreign participation contracted to 8%. Net foreign inflows were seen in Nations Trust Bank (LKR 21mn), Access Engineering (LKR 7mn), Distilleries (LKR 3mn) while net foreign outflow was mainly seen CT Holdings (LKR 10mn).