Colombo equities extended the losses for the third consecutive day where benchmark index touched 7,043 mark in the opening hours but failed to retain the positive momentum to close at 7,030.45, down by 9.87 index points or 0.14%. 20-scrip S&P SL index marginally increased by 1.96 index points or 0.09% to end at 3,783.13.

Price declines in high caps such as Ceylon Beverage Holdings (closed at LKR 801.10, -6.9%), Dialog Axiata (closed at LKR 11.00, -0.9%) and People’s Leasing & Finance (closed at LKR 20.80, -3.3%) dragged index performance to red zone.

Daily market turnover was LKR 825mn. Dialog Axiata positioned as the top contributor to the total turnover with LKR 250mn underpinned by several crossings of 22mn shares at LKR 11.00 and counter accounted for 30% of the total turnover. Seylan Bank non-voting (LKR 116mn), Overseas Realty (LKR 46mn) and Ceylon Grain Elevators (LKR 34mn) were next best contributors to the turnover.

Single crossing was recorded in Overseas Realty (1.0mn shares at LKR 22.00) and accordingly crossings accounted for 32% of the total turnover.

Reflecting the negative investor sentiments, out of 256 counters, 107 slipped, 92 advanced while 57 remained unchanged. Cash map advanced from 33% to 44%. 27 counters touched 52wk low prices while only Colombo City Holdings, Taprobane Holdings and Tess Agro non-voting managed to reach 52wk high price levels.

Subsequent to the announcement in Colombo City Holdings, regarding the board decision to dispose the land & building situated in Colombo 02, stock climbed to a 52wk high price of LKR 930.00 but closed lower at LKR 925.00 (+32.5%).

Ceylon Grain Elevators, Lanka Century Investments and People’s Leasing & Finance were among heavily traded counters. Meanwhile, textile industry counters namely, Textured Jersey and Hayleys Fabrics witnessed negative returns. Textured Jersey closed at LKR 31.30 (-1.9%) while Hayleys Fabrics closed at LKR 22.40 (-0.4%).

Further, several mid-caps such as Aitken Spence (LKR 93.80), Overseas Realty (LKR 21.90), Aitken Spence Hotels (LKR 65.00), Union Bank (LKR 21.20) and Colombo Dockyard (LKR 160.00) declined to 52wk low price levels.

Foreign investors continued to be net buyers with a net foreign inflow of LKR 206mn. Foreign participation was 17%. Net foreign inflows were seen in Dialog Axiata (LKR 162mn), Seylan Bank non-voting (LKR 22mn), Hatton National Bank non-voting (LKR 9mn) while net foreign outflow was mainly seen in Softlogic Holdings (LKR 2mn).

Lanka Securities Research