Volatility returned to the Colombo equities on Wednesday as the main index advanced marginally in the morning to 7,375.06 (+7.68 points, +0.10%), but pulled back in the afternoon to close in the negative column recording a three week low of 7,324.40 with a loss of 44.10 points (-0.6%). 20-script S&P SL index lost 30.40 points (-0.74%) to end at 4,103.12.

During post-election period the ASI lost 281.39 points or 3.7% while S&P SL 20 index plunged 162.03 points (-3.8%).

The losses were mainly driven by the price depreciation in high cap counters such as John Keells Holdings (closed at LKR 230.00, -2.1%), Chevron Lubricant (closed at LKR 418.90, -3.4%), Dialog Axiata (closed at LKR 13.70, -1.4%) and Cargills Ceylon (closed at LKR 150.00, -2.7%).

Daily market turnover reached LKR 796mn underpinned by several crossing recorded in Nations Trust Bank (1.7mn shares at LKR 110.00 per share), Access Engineering (3mn shares at LKR 27.00 per share), National Development Bank (0.1mn shares at LKR 240.00 per share) and Anilana Hotels & Properties (2.7mn shares at LKR 7.50 per share). Nations Trust Bank’s crossings contributed 24% of the turnover while total crossings accounted for 42% of the market turnover.

Further Nations Trust Bank positioned at the top of the turnover list with LKR 200mn followed by Access Engineering (LKR 155mn) and John Keells Holdings (LKR 56mn).

Out of 249 shares traded 125 slipped, 78 advanced while 46 counters remained unvaried. Cash map declined to 36% from 40%. 10 counters dropped to 52wk low price levels while Ceylinco Insurance, Vallibel Finance and A I A Insurance reached to 52wk high price levels.

Subsequent to the release of December quarter earnings, Vallibel Finance closed at 52wk high of LKR 47.80, +2.8%. The company recorded a notable profit growth of 55%YoY to LKR 106mn during the quarter.

Moreover shares of Access Engineering continued to be the most preferred share followed by Palm Garden Hotel rights, John Keells Holdings, MTD Walkers and Amana Takaful.

Foreign investors were net buyers with a net inflow of LKR 69mn. Foreign participation was 13%. Foreign investors mostly gathered around banking sector counters today where net foreign inflows were witnessed in counters such as National Development Bank (LKR 49mn), Sampath Bank (LKR 34mn), and Hatton National Bank (LKR 16mn) whereas net foreign outflow was mainly seen in Seylan Bank (LKR 5mn).

Meanwhile Treasury bill yields started to pick up slowly as 12 month T-bill yield increased by 1bp to 6.05% at today’s weekly primary T-bill auction while both 6 month and 3 month T-bill yields also increased by 1bp each to 5.90% and 5.80% respectively.

Lanka Securities Research