Colombo stocks slugged the seven day winning streak on Friday to close the weekly operations on negative note. Main index declined by 7.46 points or 0.11% to end at 6,661.40 and 20-script S&P SL index declined by 26.98 points or 0.72% to end at 3,708.16. Price depreciations in primary blue chips such as Carson Cumberbatch (closed at LKR 420.00, -2.3%), Commercial Bank (closed at LKR 146.00, -1.7%) and Hatton National Bank (closed at LKR 167.90, -1.1%) contributed negatively to the index performance.

Losers outweighed gainers 130 to 99, while 50 counters remained unchanged. Cash map declined to 45% from 56%.

Daily market turnover was LKR 1.7bn. Textured Jersey (LKR 289mn) emerged as the top contributor to the market turnover followed by John Keells Holdings (LKR 218mn) and DFCC Bank (LKR 164mn). Several negotiated transactions were recorded in DFCC Bank (1mn shares at LKR 162.50 per share) and Textured Jersey (6.5mn shares at LKR 19.50 per shares). Aggregate value of crossings represented 17% of the market turnover.

Meanwhile George Steuart Finance, Textured Jersey and PCH Holdings were among mostly traded stocks.

Foreign investors were net buyers with a net inflow of LKR 101mn while foreign participation was at 17%. Net foreign inflows were seen in John Keells Holdings (LKR 130mn), Textured Jersey (LKR 30mn) and Sampath Bank (LKR 26mn) while net foreign outflow was mainly seen in DFCC Bank (LKR 163mn).

Lanka Orix Finance announced the company obtained a sequestration order from high court preventing Dynaris from disposing of its assets. These assets also included shares of PCH Holdings. Dynaris Holdings is due approximately LKR 100mn to Lanka Orix Finance.

Further Lucky Lanka Milk Processing Company announced that the initial public offering of 38mn ordinary voting shares at LKR 6 per share and 24mn ordinary non-voting shares at LKR 3 per share has been oversubscribed today.

Hayleys MGT Knitting Mills announced a right issue today at LKR 9.50 per share, with a shares proportion of 04 new ordinary shares for every 11 existing ordinary shares held.

Lanka Securities Research