Colombo equities swung between gains and losses in another choppy session on Monday and ended on negative note amid price declines in high cap counters. The market moved to the green territory in the morning, recording a gain of 12.51 index points but lost the momentum in the evening session. All share price index shed 44.07 points or 0.62% to end at a 7-week low of 7,078.66 while S&P SL 20 index shed 39.35 points (-0.99%) to end at 3,924.33.

The losses were mainly driven by counters such as John Keells Holdings (closed at 190.00, -2.6%), Good Hope (closed at 1,601.00, -11.4%) and Ceylon Tobacco (closed at 950.00, -0.7%).

John Keells Holdings was the most traded stock of the session. The selling pressure drove the counter to a 52wk low price of LKR 189.90.

Further Lanka Hospitals attracted investor interest during the session subsequent to the first & final dividend announcement of LKR 0.50 per share. The counter closed at LKR 46.00, +9.8%.

Shares of Hemas Holdings, Swisstek and Textured Jersey also were among mostly traded counters.

Daily market turnover was LKR 660mn. John Keells Holdings positioned at the top of the turnover list with LKR 147mn underpinned by the crossing where 0.1mn shares traded at LKR 190.00 per share. Sampath Bank (LKR 113mn), Ceylon Guardian (LKR 93mn) and Hemas Holdings (LKR 35mn) recorded next best contributions to the market turnover.

Other negotiated deals were witnessed in Sampath Bank (0.2mn shares at a price range of LKR 259.00-263.00) and Ceylon Guardian (0.5mn shares at LKR 186.00 per share). Total crossings represented 25% of the market turnover.

Reflecting the lack luster trading, daily market volume dropped to an 8-week low of 17mn shares. Losers outweighed the gainers 134 to 67 while 48 counters remained unchanged. Cash map declined to 43% from 65%. 17 counters fell to 52wk low prices.

The entire high cap banking sector counters namely Commercial Bank (-0.1%), Sampath Bank (-2.3%), National Development Bank (-1.4%), Hatton National Bank (-1.3%) and DFCC Bank (0.9%) declined in today’s trading session.

Foreign investors were net buyers for the second consecutive session with a net foreign inflow of LKR 40mn. Foreign participation was 25%. Net foreign inflows were mainly seen in Hemas Holdings (LKR 11mn), Sampath Bank (LKR 10mn) and Lanka Century Investment (LKR 4mn) while net foreign outflow was mainly seen in Lanka Hospitals (LKR 4mn).

Meanwhile Agstar declared a final dividend of LKR 0.20 per share. Despite the first & final dividend announcement of LKR 23.00 per share, Alliance Finance declined to LKR 920.00 with a drop of 3.6% during the session.

Dipped Products made an announcement to CSE informing the current situation with regard to the court case filed against the Hanwella Rubber Products Limited by the Padukka Police. According to the announcement the Avissawella high court stayed the Magistrate’s order on Hanwella Rubber Products Limited, based on the appeal and revision application made by the company enabling its factory to continue operations.

Please note that National Development Bank LKR 10bn debenture issue will be open for subscription on 17th June 2015.

Lanka Securities Research