Colombo shares ended the activities on negative note on Thursday for the second consecutive session amid political uncertainty on investor sentiments and profit taking. However the market turnover recorded an 8-month high of LKR 5.3bn driven by hefty crossings recorded in Ceylinco Insurance during the session. Benchmark All Share Price index slipped 8.18 index points or -0.11% to end at 7,236.87 while S&P SL 20 index lost 17.25 points (-0.42%) to end at 4,043.60.

The losses were mainly contributed by the price depreciations in counters such as Distilleries (closed at LKR 283.00, -2.4%), Bukit Darah (closed at LKR 675.00, -2.2%) and John Keells Holdings (closed at LKR 200.00, -0.7%). Further price decline in Sri Lanka Telecom was also negatively affected to the market performance where the counter declined to closed at LKR 46.50, -2.1% on its XD date.

Ceylinco Insurance emerged as the top contributor to the market turnover with LKR 3.5bn underpinned by weighty crossings where 2.2mn shares traded at LKR 1,602.00 per share (11% of the total issued shares of the company). The crossings recorded in CINS accounted for 67% of the market turnover. Further United Motors (LKR 477mn), John Keells Holdings (LKR 297mn) and Seylan Bank (LKR 183mn) recorded next best contributions to the turnover.

Several other crossings were recorded in John Keells Holdings (0.9mn shares at LKR 200.00 per share), Cargills Ceylon (0.3mn shares at LKR 138.00 per share) and United Motors (4.9mn shares at LKR 97.00 per share). Total crossings represented 80% of the total turnover.

Losers surpassed the gainers 105 to 100 while 52 remained as the same. Cash map declined to 45% from 53%. 18 counters touched 52wk high prices while only Anilana Hotels & Properties, Reef Warrant 0019 and Expolanka recorded 52wk low prices.

Moreover Sanasa Development Bank, John Keells Holding and Commercial Credit & Finance traded heavily during the session. In addition Panasian Power attracted heavy investor preference subsequent to the yesterday’s final dividend announcement of LKR 0.30 per share. Both Panasian Power and Sanasa Development Bank recorded 52wk high prices of LKR 4.00, +5.3% and LKR 136.60, +6.9% respectively.

Meanwhile several finance sector counters such as Softlogic Finance (LKR 53.00), Singer Finance (LKR 23.20), Vallibel Finance (LKR 58.20), Lanka Orix Finance (LKR 4.60) and LB Finance (LKR 185.00) touched 52wk high prices.

Out of 297 companies listed in Colombo Stock Exchange, 47 companies have released their March quarter earnings so far. Out of which five banking sector counters have released their results where except Nations Trust Bank, other banks such as Commercial Bank, Sanasa Development Bank, Hatton National Bank and Seylan Bank have recorded positive growth in quarterly profits.

Furthermore Alumex Limited declared a final dividend of LKR 0.25 per share yesterday and released their March quarter results with a profit growth of 37%YoY. However despite the dividend announcement and the positive results the counter dropped today to close at LKR 17.70, -1.7%.

Foreign investors were net buyers with a net foreign inflow of LKR 2.7bn for the second consecutive day. Foreign participation was 35%. Net foreign inflows were seen in Ceylinco Insurance (LKR 2.7bn), United Motors (LKR 480mn) and Access Engineering (LKR 8mn) while net foreign outflow was mainly seen in John Keells Holdings (LKR 209mn). Subsequent to today’s notable foreign inflows, year to date net foreign inflow increased to LKR 5.7bn.

Lanka Securities Research