Colombo equities closed with negative returns on Wednesday, snapping the four day winning streak despite the continued drop in T-bill yields for the eight consecutive week. All share index swung between gains and losses where index declined to 7,181 mark (-0.3%) in the opening hours but managed to close at 7,192.29 with a loss of 9.82 index points (-0.14%). 20-scrip S&P SL index declined by 0.13% (5.18 index points) to close at 4,058.98.

Price depreciations in counters such as Commercial Leasing and Finance (closed at LKR 4.20, -6.7%), Chevron Lubricants (closed at LKR 400.10, -2.2%) and Ceylon Tobacco (closed at LKR 1,005.00, -0.5%) affected negatively to index performance.

Daily market turnover reached one-month high of LKR 1.7bn. Commercial Bank emerged as the top contributor to the turnover with LKR 231mn underpinned by two crossings of 0.6mn shares at LKR 171.00. Union Bank and Dunamis Capital were next contributors to the turnover with LKR 213mn & LKR 205mn respectively.

Crossings were witnessed in Union Bank (2.0mn shares at LKR 25.50), ACL Cables (0.3mn shares at LKR 27.00), Sampath Bank (0.1mn shares at LKR 264.00) and Dunamis Capital (6.1mn shares at LKR 33.00). Aggregate value of the crossings accounted for 24% of the total turnover.

Gainers outweighed the losers 105 to 101 while 60 counters remained unchanged. Cash map declined to 49% from 59%. 11 counters reached 52wk high prices while only Expolanka Holdings and Asia Siyaka Commodities touched 52wk low price levels of LKR 8.40 and LKR 3.10 respectively.

Renuka Holdings was the most favored counter of the session where counter reached LKR 32.90 but closed below at LKR 32.60 (+9.0%). Further Textured Jersey recorded a new 52wk high of LKR 29.40 but closed below at LKR 29.30 (+3.9%). Meanwhile Hemas Holdings rights closed at LKR 1.20 (-57.1%) on the renunciation day.

DFCC Bank declared first and final dividend of LKR 6.00 per share. Counter advanced to LKR 221.00 (+0.5%). Further, Lanka Ashok Leyland announced first and final dividend of LKR 40.00 per share and stock inclined by 1.4% to LKR 1,420.00 despite the negative results released today.

Both Seylan Bank voting and non-voting shares reached to 52wk high prices of LKR 107.00 and LKR 71.90 respectively. Seylan Bank voting share closed at LKR 106.50 (-0.2%) while non-voting share end at LKR 70.50 (-1.3%).

Foreign investors continued to be net sellers with a net foreign outflow of LKR 516mn for the third consecutive day. Foreign participation was high at 30%. Net foreign outflows were seen in Dunamis Capital (LKR 190mn), Union Bank (LKR 187mn) and Commercial Bank (LKR 124mn) while net foreign inflow was mainly seen in Hatton National Bank (LKR 11mn).

Meanwhile at today’s Treasury bill auction, T-Bill yields further dropped where 12M yield declined by 4bps to 6.35% while 3M yield declined by 3bps to 6.12% and 6M yield declined by 6bps to 6.26%. CBSL offered LKR 25bn worth of Treasury bills today and the auction was oversubscribed by 3.1 times with bids received amounting to LKR 77.1bn. It was decided to accept LKR 32.3bn.

Lanka Securities Research