MARKET GAINS AHEAD OF 2015 BUDGET

During the holiday shortened week, the All Share Price Index (ASPI) lost 20.99 points to close at 7,213.48 while the S&PSL20 lost 25.76 points to close at 4,003.79. The daily average turnover was recorded at Rs..1.23bn compared to Rs.1.55bn reported during the previous week. Foreign buying for the week was Rs.1,420mn and foreign selling was Rs.732mn. The market continued to be sluggish on Monday with day’s turnover limited to Rs. 863mn. The single largest contribution was a mere Rs.90mn reported from Seylan Bank (SEYB) with more than 1mn shares traded and share closed up at Rs.90.00 (2.27%). Seylan Developments (CSD) contributed Rs.73mn and closed down at Rs.14.70 (2.00%) with over 5mn shares traded. JKH closed down at Rs.247.20 posting Rs.59mn in turnover; 240,311 shares traded which included foreign selling worth of Rs.31mn. The market closed down with ASPI losing 21.02 points and S&PSL20 losing 21.39 points respectively.

JKH made the single most significant contribution to the day’s turnover on Tuesday, amounting to Rs.279mn. Over 1mn shares of JKH traded during the day which included a foreign purchase worth Rs. 126mn. However the share closed down at Rs.246.50 adding pressure on indices. JKH.W0022 closed down at Rs.72.00 (1.37%) and JKH.W0023 also closed down Rs.75.60. Commercial Bank of Ceylon also made an important contribution worth Rs.139mn with 878,678 shares traded, and the share closed down at Rs.158.00 (1.43%). The day’s turnover was Rs.897mn and the market closed down with both ASPI and S&PSL20 losing 52.29 points and 29.51 points respectively.

The market bounced back on Thursday ahead of the 2015 Budget announcements. ASPI gaining 28.35 points and S&PSL20 gaining 12.94 points. The key highlight for the day was National Development Bank’s (NDB) contribution worth Rs.1.2bn to the day’s turnover. More than 5mn shares of NDB traded during the day and majority traded at Rs.240.00 by way of four crossings. NDB share closed up at Rs.242.50 (1.04%). More than 1.4mn shares of JKH traded for Rs.351mn which included foreign purchases worth Rs.229mn. JKH closed up at Rs.249.80 (1.34%) while JKH.W0022 closed flat at Rs.72.00and JKH.W0023 closed up at Rs.77.10 (1.98%). The day’s total turnover reached Rs.2.2bn. On Friday JKH made the single most significant contribution worth Rs.143mn to the day’s turnover. JKH saw 575,018 shares change hands during the day and closed down by Rs.1.80 at Rs.248. Lanka IOC (LIOC) also contributed Rs.87mn with nearly 2mn shares traded and closed down at Rs.47.10. Laugfs Gas nonvoting share also chipped in Rs.80mn worth revenue with more than 2mn shares traded and closed up at Rs.36.00(2.85%). The day’s turnover was Rs.870mn and the market closed up on a positive note with ASPI gaining 23.97 points and S&PSL20 gaining 12.20 points.

Investor sentiment remained positive with the expectation of 2015 budget to be more investor-friendly.