Dreary sentiment continued to dominate the stock market as the bourse started the new month with another lackluster trading session. Benchmark All Share Price index dropped below 7,000-mark after 11-weeks to end at 6,982.80 with a loss of 38.00 index points or 0.54%. S&P SL 20 index lost 14.15 points (-0.36%) to drop below 3,900-mark to end at a 12-week low of 3,893.88.

Prices of index heavy counters such as DFCC Bank (closed at LKR 193.00, -3.4%), Peoples Leasing (closed at LKR 23.00,-1.3%), LB Finance (closed LKR 224.30,-5.6%) declined after going ex-dividend today. Further price decline in Ceylon Tobacco (closed at LKR 899.00, -0.2%) and Sri Lanka Telecom (closed at LKR 43.40, -1.8%) affected adversely to the index performance.

Daily market turnover was LKR 436mn. Peoples Leasing topped the turnover list with LKR 67mn followed by Hemas Holdings (LKR 56mn), Access Engineering (LKR 54mn) and Ceylon Tobacco (LKR 39mn). Single crossing was recorded in Hemas Holdings where 0.7mn shares changed hands at LKR 82.00 per share. The crossing accounted for 13% of the market turnover.

Reflecting the lackluster investor sentiments, losers surpassed the gainers 115 to 74 while 56 counters remained unchanged. Cash map significantly declined to 37% from 55%. 17 counters declined to 52wk low prices while only East West Properties advanced to a 52wk high price of LKR 17.40, +2.4%.

Further, Access Engineering managed to attract heavy investor interest during the session subsequent to the announcement of the investment in Horizon Holdings Ventures (Pvt) Ltd (100% holding) & Horizon Holdings (Pvt) Ltd & (50% holdings). The counter closed with a 0.8% gain at LKR 24.00.

Moreover shares of Textured Jersey, East West Properties, L B Finance and Lanka IOC were among mostly traded stocks.

Meanwhile Commercial Leasing and Finance announced that they have obtained approval for listing the LKR 5bn (50mn debentures at LKR 100.00 each) rated, senior, unsecured, redeemable debentures. The issue will be open for subscriptions on 14th July 2015 and the prospectus would be delivered on 3rd July 2015.

Senkadagala Finance declared a final dividend of LKR 0.80 per share during the trading session. In addition Nawaloka Hospitals declined to LKR 2.90, -6.5% despite the yesterday’s dividend announcement of LKR 0.07 per share.

Foreign investors were net sellers for the second consecutive session with a net outflow of LKR 18mn. Foreign participation was 36%. Net foreign outflows were seen in People’s Leasing (LKR 62mn), Hatton National Bank (LKR 3mn) and Softlogic Holdings (LKR 3mn) while net foreign inflow was mainly seen in Sampath Bank (LKR 12mn).

Please note, shares of John Keells Holdings will commence trading tomorrow, after three days of dealing suspension subsequent to the share subdivision.

Lanka Securities Research