Thursday 1 December 2016

Colombo Stock Exchange Market Review – 01st Dec 2016


Colombo bourse surged on month’s opening day partly supported by the drop in treasury yields after four weeks. ASI recorded its highest intra-day gain in four months to close at 6,309.04 (+67.94 index points, +1.09%). High cap S&P SL 20 index raced to 3,500 mark and closed at 3,508.44, with an increase of 41.34 index points or 1.19%.

Blue-chips namely, Ceylon Cold Stores (closed at LKR 799.80, +3.6%), John Keells Holdings (closed at LKR 150.00, +1.2%) and Lanka Orix Leasing (closed at LKR 77.70, +6.0%) pushed the index higher along with banks where Commercial Bank (+1.4%), Sampath Bank (+1.3%), Hatton National Bank (+0.1%), National Development Bank (+2.2%) and DFCC Bank (+2.4%) posted notable gains.

John Keells Holdings (LKR 699mn) drove the turnover to LKR 1.2bn supported by hefty crossings of 2.1mn shares which changed hands at LKR 149.00. Further, Commercial Bank (LKR 156mn) and Hatton National Bank (LKR 111mn) made noteworthy contribution.

Another two crossings were seen in Hatton National Bank (0.35mn shares at LKR 218.50) and accordingly, aggregate value of crossings accounted for 33% of the turnover.

Reflecting the positive sentiments, gainers offset the losers 124 to 18, while 47 scripts remained unchanged. Retail investor attention was retained by Commercial Credit & Finance and John Keells Holdings. Decline in treasury rates draw the investors to First Capital Holdings (+6.8%) and its parent company, Dunamis Capital (+11.5%).

Among the top losers, Pan Asia Bank declined by 3.2%, subsequent to the right issue. Bank intends to raise LKR 2.1bn through issue of 147.5mn rights to meet regulatory capital requirements.

Meanwhile, CIC Holdings declared an interim dividend of LKR 1.00 per share.

Foreign investors were net buyers with a net inflow of LKR 45mn. Foreign participation was 70%. Net foreign inflows were seen in John Keells Holdings (LKR 47mn), Nations Trust Bank (LKR 12mn) and Tokyo Cement non-voting (LKR 9mn). Net foreign outflow was mainly seen in Hatton National Bank (LKR 26mn).
Source: LSL

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