Thursday 8 December 2016

Colombo Stock Exchange Market Review – 08th Dec 2016


Colombo bourse edged higher on Thursday backed by high investor interest in selected blue-chips. However, the highlight of the day was the strategic transaction in Commercial Credit, which saw a 95.4mn shares changing hands at LKR 111.00. Not only had the transaction pushed the turnover to near 5-year high, it turned the year-to-date net foreign outflow to a net inflow of LKR 997mn.

As notified earlier, the transaction was executed in accordance with the share purchase agreement between BG Investments, Creations Investments, Mr.S.L. La France (Sellers) and Group Lease Holdings (Buyer). However with the conclusion of the transaction, the share price of Commercial Credit plummeted in the normal board to LKR 60.60, -5.9%.

The benchmark ASI inclined 10.52 index points (+0.2%) to 6,337.82 while blue-chip S&P SL 20 index gained 22.07 index points (+0.6%) to 3,555.91. The index was driven up by the late-hour gains in John Keells Holdings (LKR 155.00+2.6%) along with Hemas Holdings (LKR 98.00,+2.1%) and John Keells Hotels (LKR 11.20,+4.7%). Shares of Sri Lanka Telecom (LKR 35.00,-2.8%), Commercial Credit and Carsons Cumberbatch (LKR 178.00,-3.0%) lead the losers. Market breadth was positive with gainers offsetting losers 69 to 59.

Market turnover touched near 5-year high of LKR 12.0bn. 88% of the turnover came from Commercial Credit (LKR 10.6bn) while the balance LKR 1.4bn was supported by the activities in Dialog Axiata (LKR 540mn), John Keells Holdings (LKR 533mn) and Hemas Holdings (LKR 70mn). Crossings in Commercial Credit, John Keells Holdings (2.1mn shares at LKR 152-155.00) and Hemas Holdings (0.4mn shares at LKR 98.00) contributed 91% of the turnover.

John Keells Holdings and Commercial Credit dominated the market activity today and accounted for 30% of the trades. However, Renuka Agri Foods (LKR 3.20,+6.7%), Ceylon Cold Stores (LKR 780.20,+0.5%) and Access Engineering (LKR 25.20,+0.8%) managed to attract some investor interest in today’s session.

Foreign activity shot up to 85% of the market turnover as a result of the transactions in Commercial Credit. Accordingly, net foreign inflow in today’s session stood at LKR 2.9bn, with notable net inflows in Commercial Credit (LKR 2.5bn), John Keells Holdings (LKR 422mn) and Lion Brewery (LKR 18mn) while top net outflow was seen in Hemas Holdings (LKR 15mn).
Source: LSL

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