Bourse seesaws as investors adopt wait-and-see approach
Tuesday, 27 January 2015 00:43
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The Colombo stock market swung between gains and losses and ended higher in thin trading yesterday as investors adopted a wait-and-see approach.
Lanka Securities said the market turnover reached eight-month low in yesterday’s lacklustre trading session while the volume touched a one month low of 16 million shares.
“Investors are remaining on the sidelines ahead of tomorrow’s monetary policy review and Thursday’s mini budget which is expected to provide a direction to the sluggish market sentiment,” Lanka Securities added.
The benchmark All Share Price Index lost 11.28 points in the morning session and bounced back strongly in the afternoon session with a gain of 50.05 index points. The core index closed at 7,316.08 with a gain of 39.45 points (+0.54%) while S&P SL 20 index gained 17.85 points (+0.44%) to end at 4,096.74.
Gains were driven by index-heavyweights such as John Keells Holdings (closed at Rs. 229.50, +2.9%), Nestle Lanka (closed at Rs. 2,265.00, +3.7%) and Carson Cumberbatch (closed at Rs. 410.00, +2.5%).
Daily market turnover reached Rs. 338 m, its lowest since May 2014. DFCC Bank emerged as the top contributor to the market turnover with Rs. 50 m followed by John Keells Holdings (Rs. 37 m) and Vallibel One (Rs. 23 m). There were no crossings yesterday.
Out of 246 counters traded 113 advanced, 76 slipped and 57 remained unchanged. Cash map notably increased to 60% from 28%. Nine counters reached a 52-week low price.
Palm Garden Hotels rights were traded heavily on the renunciation date. Further shares of Access Engineering, John Keells Holdings and Union Bank also were among mostly traded counters.
Interim results of LB Finance released yesterday reported a hefty profit growth of 106%YoY while Nation Lanka Finance also recorded a massive profit growth (<9000%+) in December quarter earnings.
LB Finance counter closed at Rs. 168.00, +3.7%. Nations Lanka Finance touched the 52-week low price level but recovered to close at Rs. 4.70, +2.2%.
Foreign investors were net buyers yesterday with a net inflow of Rs. 42 m. Foreign participation was 14%. Net foreign inflows were witnessed in counters such as John Keells Holdings (Rs. 26 m), Expolanka (Rs. 6 m), and Sampath Bank (Rs. 5 m) whereas net foreign outflow was mainly seen in Laugfs Gas (Rs. 4 m).
