Stock market savours double digit gain

Wednesday, 9 July 2014 00:58 - - {{hitsCtrl.values.hits}}

All Share Index now at 33 month high; net foreign buying tops Rs. 9 billion

The Colombo stock market yesterday reached the double digit return landmark with investor sentiments boosting the benchmark index to highest level in 33 months and net foreign buying returning. Active trading by institutional and retail investors saw the All Share Index (ASI) gain by 1% or 67 points to close at 6,549.91, a level at its highest since 14 October 2011, according to the Colombo Stock Exchange (CSE). The gain pushed the year-to-date positive return at the CSE to 11.04% yesterday from 9.91% on Monday. As reported by the Daily FT yesterday, the market was highly anticipative whether the ASI would cross the double digit return mark. The ASI also surpassed the psychological resistance level of 6,500, after an elapse of more than 12 months prompting NDB Stockbrokers to say the move indicated “the positive momentum.” The 11% year-to-date gain comes on top of a 4.78% return achieved in 2013, which ended two years of negative returns. The liquid S&P SL 20 Index gained by 1.6% to finish at 12.63% year-to-date return. Ending two days of net selling, foreign investors swung to a net buying position. Net inflow yesterday was Rs. 290 million compared to a net selling of Rs. 168 million on Monday. The year to date net foreign inflow was an impressive Rs. 9.22 billion. CSE’s market capitalisation has grown by 11.8% to Rs. 2.75 trillion. Chevron for the second consecutive day saw heavy foreign buying with yesterday’s net inflow being Rs. 124 million. HNB saw net buying of Rs. 97 million and Nestle saw Rs. 63 million. NDB Stockbrokers said institutional and high net worth investor interest continued with parcel trades elevating the turnover to Rs. 1.7 billion. Lanka Securities said yesterday gainers outweighed losers 138 to 71, while 61 counters remained unchanged. Cash map improved to 65% from 56%. 28 equities touched 52wk high prices while one counter reached 52-week low price levels. Distilleries was the highest turnover with 1.1 million of its shares traded (inclusive of two crossings each covering over half a million shares at Rs. 205 and Rs. 205.10 each) for Rs. 232 million. JKH saw Rs. 181 million worth of trading whilst its share price rose by Rs. 7.50 or over 3% to close at Rs. 234.60. LOLC Securities said heavy weight JKH and NEST (up Rs. 122.5 to Rs. 2,095) positively contributed to ASI by 33 points. PCH Holdings, PC Pharma and Tess Agro attracted heavy investor participation. Price of REEF.W gained 13% for the day while BLUE.X witnessed a gain of 9%. Access Engineering and Sathosa Motors announced final dividends of Rs. 0.50 and Rs. 5 per share respectively. Access Engineering shares closed at Rs. 26.20 (+1.6%) while Sathosa Motors counter closed at Rs. 240.20 (-0.2%). Bank Finance & Insurance sector contributed mostly to the market turnover while the sector index was up by 1.03%.

Rs. 300 m Lucky Lanka Milk IPO crosses half way mark

The Rs. 300 million Initial Public Offering (IPO) of Lucky Lanka Milk Processing Company Ltd. has passed its half way mark by its official opening day on Monday. The company said it has received 810 applications for 10.4 million Ordinary Voting Shares at a value of Rs. 62 million, and 1,162 applications for 34.5 million Ordinary Non-Voting Shares at a value of Rs. 103 million. The IPO is for 38.0 million Ordinary Voting shares at Rs. 6 per share and 24 million Ordinary Non-Voting Shares at Rs. 3 per share. The shares will be listed on the Diri Savi Board of the Colombo Stock Exchange. Out of the proceeds, Rs. 200 million will settle high cost borrowings, and Rs. 75 million will fund the expansion of the existing production plant with new cold room complex including an ammonia refrigeration system, extension to the existing UHT milk processing building and new machinery including conveyer systems and pigging systems. The remaining Rs. 25 million will be utilised for new projects such as ‘Gedarata Kiri’, milk bar outlets and school canteens.