Trade Summary Market - 22/10/2013

Source: Direct FN

http://www.cse.lk/cmt/upload_cse_report_file/daily_report_652_22-10-2013.pdf

Colombo stock market extended losses weighed down by blue-chips such as Ceylon Tobacco (LKR 1,125.00,-2.0%), Carsons (LKR 390.00,-3.7%) and Dialog Axiata (LKR 8.80,-1.1%).

ASI fell by 21.43 points (-0.36%) to end at 5,925.22 while S&P SL 20 Index declined by 14.95 points (-0.45%) to end at 3,272.58.

Daily market turnover was LKR 983mn. John Keells Holdings (LKR 213.00, -0.5%) was the highest contributor to the turnover with LKR 238mn and traded heavily throughout the day. Further, Distilleries (LKR 190.00,+1.0%) and Commercial Bank (LKR 118.30,+0.3%) recorded the next top turnover levels of LKR 193mn and LKR 140mn with the support of negotiated deals. Accordingly crossings were recorded in Distilleries (333,889 shares at LKR 189-190.00 per share), Commercial Bank (347,014 shares at LKR 118.00 per share) and Access Engineering (~1.8mn shares at LKR 22.00 per share).

John Keells Holdings – Rights (LKR 50.10,+9.4%), Touchwood Investments (LKR 4.50) and Union Bank (LKR 16.70,+5.0%) were the mostly traded stocks during the day.

Foreign participation accounted for 39% of the total market activity and posted a net inflow of LKR 227mn. Net foreign buying was seen in stocks such as Distilleries (LKR 191mn), John Keells Holdings (LKR 90mn) and Commercial Bank (LKR 8mn)

Cash map closed at 43%.

Trading in JKH, both the shares and the rights, accounted for much of the business on the CSE yesterday with a turnover of nearly a billion rupees (Rs. 983.1 million), down from the previous day’s Rs. 1.05 billion posted and both indices down – the All Share by 21.43 points (0.36%) and S&P by 14.95 points (0.45%) with 134 losers strongly outpacing 74 gainers while 104 counters closed flat.

``The spotlight continued to shine on JKH with both the share as well as the rights intensively traded,’’ a broker said. ``There were no crossings but the counter generated the most turnover on the floor with over 1.1 million shares done between Rs. 210.50 and Rs. 214 closing a rupee down at Rs. 213 and contributing Rs. 238.1 million to turnover.’’

Nearly 1.5 million rights were also traded between Rs. 45.20 and Rs. 51 closing Rs. 4.30 up at Rs. 50.10 and contributing Rs. 70.7 million to turnover.

Brokers noted that while the difference between the closing price of the share and the rights made it seemingly more economical to buy the share than the rights, there was an added advantage of two sets of warrants down the road that come with the rights which would make them more attractive to investors bullish on JKH.

JKH announced in a stock exchange filing that yesterday’s news that the casino gazette was being postponed made no difference to its Waterfront Development project. Renunciations on the rights issue end on Thursday and the final payment date is Friday.

"The ASPI continued to edge lower due to selling pressure centered on a selected set of large cap counters with trades on diversified, banking and beverage, food and tobacco counters accounting for a majority of turnover," John Keells Stock Brokers said in a market report.

There was a foreign inflow of Rs. 226.99 million with purchases of Rs. 492.3 million and sales of Rs. 265.3 million.

There were crossings in Commercial Bank (voting), Distilleries and Access Engineering worth Rs. 143.8 million with ComBank seeing over 0.3 million shares crossed at Rs. 118 in a deal worth Rs. 40.9 million, Distilleries over 0.3 million shares crossed in two parcels at Rs. 189 and Rs. 190 contributing Rs. 63.3 million to the business volume and Access seeing nearly 1.8 million shares crossed in a single parcel at Rs. 22 generating Rs. 39.5 million.

These counters were heavily traded on the floor too with ComBank closing 30 cents up at Rs. 118.30 with nearly 0.7 million shares done contributing Rs. 98.9 million to turnover, Distilleries closing Rs. 1.90 up at Rs. 190 on nearly 0.7 million shares generating Rs. 129.7 million and Access closing 20 cents up at Rs. 22.20 on nearly 1.3 million shares contributing Rs. 25.9 million to turnover.

Brokers said that there was interest in banking stock apart from ComBank with NTB closing 20 cents up at Rs. 62 on nearly 0.9 million shares, Union Bank up 80 cents to close at Rs. 16.70 on nearly 1.8 million shares and NDB closing 80 cents down at Rs. 154 on 62,581 shares.

Trading in Union Bank was spurred by speculation of a deal in the offing with neither confirmation nor word on what it might be. Market gossip was that it was very close.

Chevron announced a third interim dividend of Rs. 4.50 per share for 2013 XD from Oct. 31 and with payment on Nov. 11.
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