Colombo bourse ended in negative territory snapping two day gains on Tuesday amid price declined in index heavy counters. The main index lost 34.37 index points or -0.49% to end at a nearly 9-week low of 7,044.60 while S&P SL 20 index lost 15.90 points (-0.40%) to end at 3,911.06.

The decline was mainly driven by price depreciation in counters such as Nestle Lanka (closed at LKR 2,000.10, -6.1%), Hemas Holdings (closed at LKR 83.50, -0.6%) and DFCC Bank (closed at LKR 201.00, -2.7%).

Further the price declines in Ceylon Tobacco and John Keells Holdings were also affected adversely to the index performance. Ceylon Tobacco recorded a fresh 52wk low price and closed at LKR 907.00, -0.9% while JKH closed at LKR 193.20, -0.6%.

In addition, the market capitalization dropped below LKR 3,000bn mark to record LKR 2,993.

Out of 20 counters in S&P SL index 14 equities declined while 4 counters advanced and 2 closed with flat returns. Except Commercial Bank (+0.3%) and National Development Bank (0.0%) all the other blue chip banking sector counters declined during the session.

Daily market turnover reached LKR 861mn supported by several crossing recorded in John Keells Holdings (1.1mn shares at LKR 193.00 per share), Sampath Bank (0.5mn shares at LKR 253.00 per share), Distilleries (0.3mn shares at LKR 270.00 per share) and Hatton National Bank (0.2mn shares at LKR 219.00 per share). The total crossings accounted for 53% of the market turnover.

John Keells Holdings positioned at the top of the turnover list with LKR 272mn followed by Sampath Bank (LKR 148mn) and Distilleries (LKR 86mn).

Meanwhile heavy trades witnessed in counters such as Nation Lanka Finance, Softlogic Capital, LB Finance and Sinhaputhra Finance Preference shares.

Reflecting the negative investor sentiments losers surpassed the gainers 114 to 84 while 55 counters remained unchanged. 07 counters advanced to 52wk high prices where 11 counters advanced to 52wk low prices. Cash map declined to 40% from 56%.

Moreover, both Colombo Investment Trust and Colombo Fort Investments declared their first & final dividends of LKR 1.20 per share each.

Foreign investors turned to be net sellers with a net foreign outflow of LKR 259mn. Foreign participation was 29%. Net foreign outflows were mainly seen in John Keells Holdings (LKR 261mn), Dialog Axiata (LKR 4mn) and Lanka Century Investments (LKR 3mn) while net foreign inflow was mainly seen in Millennium Housing Developers (LKR 17mn).

Lanka Securities Research