Colombo stock market witnessed negative returns on Wednesday despite the continued drop in T-bill yields for the ninth consecutive week. During the opening hours, bourse crossed 7,271 mark but failed to maintain the positive momentum gained in previous session. Main index shed 13.56 index points or 0.19% to close at 7,245.05 while 20-scrip S&P SL index declined by 0.31% (12.71 index points) to end at 4,060.85.

Price declines in counters such as John Keells Holdings (closed at LKR 201.00, -0.9%), Commercial Bank (closed at LKR 171.40, -0.2%) and Hemas Holdings (closed at LKR 79.90, -1.6%) dragged the index performance to red zone.

Daily market turnover was LKR 1.2bn. John Keells Holdings topped the turnover list with LKR 157mn underpinned by two crossings of 0.5mn shares at LKR 201.00-203.00. Distilleries and Commercial Bank were next best contributors to the total turnover with LKR 127mn and LKR 116mn respectively.

Several crossings were recorded in Commercial Bank (0.6mn shares at LKR 171.50) and Distilleries (0.1mn shares at LKR 290.00). Aggregate value of crossings represented 19% of the total turnover.

Out of 258 counters, 104 slipped, 91 advanced while 63 counters remained unchanged. Cash map unvaried at 53%. 17 counters touched 52wk high price levels.

During the session, Panasian Power declared a final dividend of LKR 0.30 per share (DY-7.7%) and counter attracted heavy investor preference. Stock reached to a 52wk high price of LKR 3.90 (+8.3%). Acme Printing and Packaging, Alufab and Regnis (Lanka) were among heavily traded counters. Both Alufab and Regnis (Lanka) reached to new 52wk high prices of LKR 36.30 and LKR 119.00 respectively.

Industrial counters such as Alumex, Swisstek (Ceylon), Royal Ceramics, Lanka Walltiles and Lanka Aluminium touched new 52wk high price levels.

Meanwhile, Dialog Axiata announced a final dividend of LKR 0.13 per share and counter advanced to LKR 11.70 but closed at LKR 11.50 (+1.8%).

Following to the release of positive earnings of Singer Sri Lanka, stock reached to a 52wk high price of LKR 134.00 (+4.9%) while Singer Industries advanced by 2.5% to LKR 197.90 subsequent to the notable profit growth of 95%.

Foreign investors were net buyers with a net foreign inflow of LKR 47mn snapping a seven day losing streak. Foreign participation was 26%. Net foreign inflows were seen in Distilleries (LKR 59mn), Tokyo Cement non-voting (LKR 10mn), Lanka IOC (LKR 6mn) while net foreign outflow was mainly seen in Pan Asia Bank (LKR 23mn).

Meanwhile at today’s Treasury bill auction, T-Bill yields further dropped where 12M yield declined by 4bps to 6.31% while 6M yield declined by 4bps to 6.22% and 3M yield declined by 2bps to 6.10%. CBSL offered LKR 26bn worth of Treasury bills today and the auction was oversubscribed by 3.0 times with bids received amounting to LKR 77.4bn. It was decided to accept LKR 38.9bn.

Lanka Securities Research