Colombo equity market started weekly operations on negative note where both counters shed returns amid the prevailing political uncertainties. Main index swung between gains and losses on Monday where index touched 7,277 mark in the opening hours. All share index marginally declined by 3.65 index points or 0.05% to end at 7,255.02 while 20-scrip S&P SL index slipped by 0.33% (13.36 index points) to close at 4,037.32.

Price declines in Carson Cumberbatch (closed at LKR 402.00, -2.4%), Bukit Darah (closed at LKR 676.00, -2.0%) and Nestle Lanka (closed at LKR 2,249.00, -1.1%) dragged index performance to red zone.

Daily market turnover was LKR 1.1bn. John Keells Holdings topped the turnover list with LKR 124mn followed by Distilleries (LKR 104mn) and Grain Elevators (LKR 89mn) respectively. Single crossing was recorded in Distilleries (0.1mn shares at LKR 288.00) and crossing accounted for 3% of the total turnover.

Out of 262 counters, 110 slipped, 99 advanced while 53 counters remained unchanged. Cash map improved to 67% from 60%. 16 counters reached 52wk high prices while 5 counters touched 52wk low price levels.

Poultry counters such as Grain Elevators and Three Acre Farms witnessed heavy investor interest where both counters reached 52wk high prices, supported by the positive earnings reported. Grain Elevators increased to LKR 52.00 but closed at LKR 50.50 (+26.3%) while Three Acre Farms touched 52wk high price of LKR 63.90 but closed below at LKR 61.20 (+9.5%).

Meanwhile financial stocks such as Singer Finance, Commercial Credit & Finance, Bimputh Finance and Vallibel Finance reached 52wk high price levels.

Subsequent to the dividend announcement and positive earnings of Dipped Products, counter advanced to LKR 153.90 but closed lower at LKR 153.00 (+0.7%). Further, Haycarb declared a final dividend of LKR 4.00 per share.

Manufacturing counters such as Alufab, Lanka Walltiles and Lanka Tiles reached fresh 52wk high prices of LKR 37.80, LKR 112.10 and LKR 118.00 respectively.

Central Finance Company and Singer Sri Lanka announced that the companies have received CSE approval for the debentures issues of LKR 3bn.

Foreign investors were net sellers for the day with a net foreign outflow of LKR 29mn. Foreign participation was 19%. Net foreign outflows were seen in John Keells Holdings (LKR 105mn), Pan Asia Bank (LKR 11mn), Laugfs Gas (LKR 10mn) while net foreign inflow was mainly seen in Distilleries (LKR 59mn).

Lanka Securities Research