Colombo stock market extended the winning streak for the fourth consecutive day to conclude the weekly operations with positive returns on Friday, ahead of the final vote on budget 2016. Benchmark index stagnated in 6,874 mark in the first half but managed to close higher at 6,886.37, with an increase of 0.38% or 26.38 index points while 20-scrip S&P SL index bagged 13.44 index points (+0.37%) to close at 3,623.91.
Today’s gains were driven by premier blue-chip, John Keells Holdings (closed at LKR 179.90, +2.2%) along with Sri Lanka Telecom (closed at LKR 47.00, +2.2%) and John Keells Hotels (closed at LKR 14.50, +0.7%). After a while, John Keells Holdings attracted high investor preference during the day and advanced to LKR 180.00 but closed lower. Subsequently, John Keells Holdings warrant 0023 advanced to LKR 33.10, +4.4%.
Daily market turnover was LKR 697mn and the turnover was equally divided among main board and crossing board. Single off-the-floor dealing of 1.0mn shares of Sampath Bank changed hands at LKR 247.00, the counter emerged as the top contributor to the turnover with LKR 259mn. Commercial Bank (LKR 95mn), Hemas Holdings (LKR 57mn), Taprobane Holdings (LKR 33mn) were next best contributors to the total turnover.
Two crossings were recorded in Commercial Bank (0.5mn shares at LKR 142.00) and Taprobane Holdings (6.0mn shares at LKR 5.50).
Market breadth was positive where out of 232 scripts, 125 advanced, 49 slipped while 58 scripts remained unchanged. Cash map declined from 66% to 60%. Keells Food Products (LKR 215.00) & ACL Plastics (LKR 179.80) stepped to fresh 52wk high prices while 9 counters declined to 52wk low price levels.
Access Engineering, Three Acre Farms, People’s Leasing & Finance and Hayleys Fabric witnessed high investor activity.
Finance companies namely, People’s Leasing & Finance (LKR 22.90, +0.9%), Lanka Orix Leasing Company (LKR 94.00, +2.2%), Central Finance (LKR 250.10, +0.1%), LB Finance (LKR 119.00, +0.3%) and Vallibel Finance (LKR 66.60, +0.8%) closed the session with gains.
Meanwhile, Colombo Fort Hotels Limited, a direct subsidiary of Lankem Ceylon has acquired 100% of the issued shares of Lak Kraft (Pvt) Ltd, which is engaged in managing a boutique hotel, for a consideration of LKR 46.3mn.
Foreign investor closed the session on selling side with a net foreign outflow of LKR 99mn. Foreign participation was 56%. Net foreign outflows were seen in Commercial Bank (LKR 85mn), Three Acre Farms (LKR 21mn), CIC Holdings (LKR 15mn) while net foreign inflow was mainly seen in Hemas Holdings (LKR 25mn).
During the week, main index collected 52.34 index points or 0.77% while S&P SL 20 index increased by 16.60 index points (+0.46%). Bogala Graphite (+11%), The Fortress Resort (+10%) and Hayleys Fibre (+9%) were among the top gainers of the week while CIC Holdings (-7%), Seylan Bank (-4%) and Tokyo Cement non-voting (-2%) were among the top losers.
The average weekly turnover declined by 74% to LKR 601mn in the absence of strategic deals seen last week. Commercial Bank topped the weekly turnover list with LKR 441mn followed by Sampath Bank (LKR 377mn) and Browns Investments (LKR 366mn).
The foreign investors were net sellers during the week recording a net foreign outflow of LKR 416mn. Foreign activity was at 45%. Top net outflows reported in Commercial Bank (LKR 283mn), Sampath Bank (LKR 110mn) and Access Engineering (LKR 42mn) while top net inflows were mainly seen in DFCC Bank (LKR 124mn), Nations Trust Bank (LKR 19mn). Subsequent to this week’s net foreign outflow, year-to-date net foreign outflow decreased to LKR 4.2bn.