Colombo stock market closed with mixed note on Wednesday with slender returns, after the 3.2% slump in prior two sessions. In the opening hours, benchmark index crossed 7,285 mark but the selling pressure led by foreign investors drove the index down despite the media reports on a resolution sponsored by USA supporting Sri Lanka and its local investigation into the alleged war crimes in the UNHRC meeting next month.

All share index managed to bag 8.52 index points (+0.12%) to close at 7,240.10 while 20-scripts S&P SL index shed 14.39 index points or -0.36% to end at 3,968.57.

Premier blue chip, John Keells Holdings advanced to LKR 183.00 (+1.6%) at the beginning but failed to continue the momentum as foreign investors off-loaded shares and the counter closed with negative returns at LKR 178.00, (-1.1%). However, both warrant 0022 (LKR 21.70, +4.8%) and 0023 (LKR 37.00, +4.2%) closed with gains.

Further, Distilleries (closed at LKR 285.00, -0.7%) and Hemas Holdings (closed at LKR 88.00, -0.8%) dragged the index lower while gains reported in Dialog Axiata (closed at LKR 11.30, +1.8%) and Asian Hotels & Properties contributed favorably to the index performance.

Daily market turnover was LKR 2.4bn. John Keells Holdings posted highest turnover of the day with LKR 1.2bn, grabbing 52% of the total turnover. Further, Nestle Lanka (LKR 82mn), Commercial Bank non-voting (LKR 75mn), Dialog Axiata (LKR 74mn) reported notable turnovers supported by crossings.

Further several off-the-floor dealings were recorded in, Ceylon Tobacco Company (0.06mn shares at LKR 960.00), Bansei Royal Resort (5.4mn shares at LKR 10.20), Sampath Bank (0.1mn shares at LKR 260.00), Dunamis Capital (0.9mn shares at LKR 33.00), Aitken Spence (0.2mn shares at LKR 98.00) and Sanasa Development Bank (0.1mn shares at LKR 166.00). Accordingly, Aggregate value of crossings represented 20% of the total turnover.
Reflecting the optimistic sentiment, 148 counters advanced, 64 slipped while 53 remained unchanged. Cash map sharply declined to 16% from 35%. 8 counters touched 52wk low prices while only CT Land Development (LKR 52.00, +2.4%) and Lanka Ventures (LKR 51.50, +1.0%) managed to reach 52wk high prices.

Ceylon Grain Elevators continued to attract investor preference and the stock advanced LKR 80.00, +2.6%. Further, Lanka IOC, Textured Jersey and Sanasa Development Bank witnessed heavy investor preference.

Moreover, Lanka Walltiles declared an interim dividend of LKR 2.50 per share and stock closed higher at LKR 116.00, +1.4%.

Foreign investors continued to remain at the selling side with net outflow of LKR 1.1bn recording the highest intraday foreign outflow since September 2014. Further net foreign outflows were seen in Distilleries (LKR 43mn), Sampath Bank (LKR 41mn) while net foreign inflows were mainly seen in Hatton National Bank non-voting (LKR 23mn).

Meanwhile at today’s Treasury bill auction, the yields inclined where yields of 6M and 12M treasuries inclined by 21bps & 25bps to 6.87% and 6.97% respectively whilst 3M yield advanced by 17bps to 6.53%. CBSL offered LKR 18bn worth of Treasury bills today and the auction was oversubscribed by 2.1 times with bids received amounting to LKR 38.6bn. It was decided to accept LKR 17.3bn.

Lanka Securities Research