On Tuesday Colombo bourse closed in green territory. ASI gained 9.36 points (+0.16%) and S&P SL20 Index gained 1.84 points (+0.06%). John Keells Holdings – Rights commenced its trading on Tuesday and attracted heavy investor interest during the day. Market turnover reached LKR 2.5bn which was far above the year-to-date average daily turnover of LKR 877mn. This hefty turnover was recorded mainly due to the negotiated deals in John Keells Holdings and John Keells Holdings – Rights. Accordingly top two turnover levels were recorded from John Keells Holdings (LKR 1.1bn) and John Keells Holdings – Rights (LKR 995mn). Further Sampath Bank recorded the third highest turnover of LKR 68mn. Touchwood Investments, York Arcade and Textured Jersey were among the heavily traded stocks. The proposed investor repayment plan of Touchwood Investments failed to increase the retail investor interest as the stock closed with no price change. Meanwhile Taprobane Holdings announced a Rights-issue of 01 for 03 shares. Foreign participation for the day was 33% whilst foreign investors were net buyers with a net inflow of LKR 696mn.
Market was closed on Wednesday due to Eid festival.
The Colombo equity market wrapped the weekly operations on Thursday with positive returns as benchmark All share price index advanced by 14.53 points (+0.24%) to close at 5,976.51 and S&P SL20 index gained 18.42 points (+0.56%) to close at 3,309.00. Price advancements in Ceylon Tobacco by LKR 20.50 (+1.18%, LKR 1,150.00), Carsons Cumberbatch by LKR 13.60 (+3.47%, LKR 405.00) and Ceylon Theaters by LKR 12.10 (+8.35%, LKR 157.00) contributed positively to the market performance.
John Keells Holdings emerged as the top contributor with LKR 227mn and John Keells Holdings-Rights was the second best contributor with LKR 135mn underpinned by negotiated deals recorded during the session followed by Sampath Bank with LKR 23mn. Off-the-floor deals were recorded in John Keells Holdings where approx. 0.75mn shares changed hands at a price of LKR 217.00-218.00 and John Keells Holding-Rights approx.0.80mn shares changed hands at a price of LKR 66.00.
Market turnover was LKR 546mn. John Keells Holding-Rights (closed at LKR 62.30,-3.9%), Touchwood (closed at LKR 4.80,0%) and MTD Walkers (closed at LKR 31.40,+6.1%) managed to attract heavy investor interest. Cash map closed at 48%. Foreign investors were net sellers for the day with an outflow of LKR 28mn. Foreign participation was 26%. Net foreign outflows were seen in counters such as John Keells Holding-Rights (LKR 70mn), HNB non-voting (LKR 7mn) and Tokyo Cement (LKR 3mn).
On Tuesday Central Bank of Sri Lanka reduced policy rates corridor by 50 basis points lowering its repo rate to 6.50% and reverse repo rate to 8.50% to boost credit. Going forward this may reduce the market interest rates gradually, which may draw back the investors to the stock market. Currently CSE is trading at a PE of 12.0x, which is 2.4% discount to the MSCI frontier market index PE and 20% discount to the MSCI frontier emerging market index PE.