Colombo bourse snapped the six day winning streak on Thursday amid high institutional activity levels. Consequently, All share index lost 23.96 index points (-0.34%) to decline from 2 week high to end at 7,070.13. S&P SL20 index plunged by 0.32% (12.11 index points) to close at 3,827.89.

Price depreciations in high caps namely, Commercial Bank (closed at LKR 157.00, -1.3%), Dialog Axiata (closed at LKR 11.30, -0.9%) and Sri Lanka Telecom (closed at LKR 48.50, -1.0%) pinned the market performance to the negative territory.

Daily market turnover was LKR 899mn. Commercial Bank emerged as the top contributor to the turnover with LKR 307mn underpinned by a single crossing of 1.7mn shares changing hands at LKR 156.00. Stock accounted for 34% of the total turnover. Distilleries (LKR 141mn), John Keells Holdings (LKR 63mn) and Hatton National Bank (LKR 54mn) were next best contributors to the turnover.

Further, several crossings were recorded in Distilleries (0.5mn shares at LKR 275.00) and Hatton National Bank (0.2mn shares at LKR 218.00). Aggregate value of the crossings represented 51% of the total turnover.

Reflecting the negative investor sentiments, 128 scripts turned red, 70 scripts advanced while 58 remained unchanged. Cash map dipped from 43% to 34%. 18 counters declined to 52wk low price levels.

Janashakthi Insurance rights drew high investor attention where stock moved to LKR 1.40 but failed retain the momentum to close at LKR 0.60, (+0.5%). Further, Royal Ceramic, Access Engineering and John Keells Holdings were among heavily traded counters.

Along with the profit growth of 131%YoY in Regnis for September quarter, the counter stepped to LKR 206.50 mark but closed lower at LKR 198.00, +1.6%. Meanwhile, despite the favourable profit increases in Citizen Development Business Finance (+19%YoY) and Singer Finance (+13%YoY) , both stocks closed the session with negative returns. Citizen Development Business Finance closed at LKR 98.40, -1.6% while Singer Finance closed at LKR 24.10, -4.7%.

Moreover, mid-caps such as Overseas Realty (LKR 21.40), Good Hope (LKR 1,430.00), Central Finance (LKR 240.00) and Colombo Dockyard (LKR 159mn) touched 52wk low prices.

Foreign investors continued to remain on selling side for the second consecutive day where foreigner’s interest on Commercial Bank continued to decrease. Net foreign outflow was LKR 319mn and foreign participation was 41%. Net foreign outflows were seen in Commercial Bank (LKR 296mn), Distilleries (LKR 55mn), Commercial Bank non-voting (LKR 10mn) while net foreign inflow was mainly seen in John Keells Holdings (LKR 20mn).

Lanka Securities Research