Colombo stock market continued to extend the rough patch on Wednesday amid the treasury yields hiking up for the seventh consecutive week. Benchmark index started the session on a positive side to touch 6,319 mark but failed to retain the momentum to close lower as investor sentiment turned red. All share index end the trading session at 6,261.18, down by 22.06 index points or 0.35% while S&P SL20 index shed 20.22 index points or 0.62% to close at 3,241.08.

Market premier blue-chip, John Keells Holdings (closed at LKR 157.40, -1.6%) dipped the index performance down along with Commercial Bank (closed at LKR 125.00, -2.3%), Lanka Orix Leasing (closed at LKR 71.00, -4.3%) and Dialog Axiata (closed at LKR 9.90, -1.0%). Together with JKH price drop, warrant 0023 declined to a fresh 52wk low of LKR 17.00 and closed at LKR 17.70, -7.3%. Further, among today’s most index influential stocks, Commercial Bank (LKR 125.00) and Dialog Axiata (LKR 9.80) declined to 52wk low price levels.

Market turnover barely able to crossed the LKR 600mn as single crossing in Ceylon Hotel Corporation contributing over 50% of the total turnover. Daily market turnover was LKR 607mn. Off-the-floor dealing of 10.5mn shares at LKR 30.00 in Ceylon Hotel Corporation secured the highest contribution to the total turnover with LKR 316mn. John Keells Holdings (LKR 33mn), Lanka Century Investments (LKR 30mn) and Commercial Bank (LKR 15mn) were among top contributors to the turnover.

Bearish investor sentiment was reflected where out of 254 counters, 110 declined, 92 advanced while 54 remained unchanged. Cash map was unvaried at 48%. 77 counters declined to 52wk low price levels.

Poultry stocks namely, Ceylon Grain Elevators (LKR 71.00, -2.2%) and Three Acre Farms (LKR 91.90, -1.8%) witnessed high investor activity. Meanwhile, John Keells Holdings, Textured Jersey and Commercial Bank were among heavily traded stocks. Banks & Finance counters such as DFCC Bank, Union Bank, Central Finance and CDB Finance touched 52wk low price levels during the day.

Foreign investors were net sellers for the day with a net foreign outflow of LKR 12mn. Foreign participation was 8%, which is the thinnest foreign activity for the year. Net foreign outflows were seen in John Keells Holdings (LKR 25mn), Commercial Bank (LKR 11mn), Royal Ceramic (LKR 7mn) while net foreign inflow was mainly seen in Asian Hotels & Properties (LKR 7mn).

Meanwhile, at today’s Treasury bill auction, 6 months yield increased by 13bps to 7.19% while one year Treasury bill rate inclined from 7.48% to 7.80% (+32bps). CBSL offered LKR 24bn worth of Treasury bills today and the auction was oversubscribed by 1.7 times with bids received amounting to LKR 41.4bn. It was decided to accept LKR 15.7bn worth of bills. 3 month treasury bills were not offered by the CBSL.