Colombo bourse concluded the weekly activities in negative zone erasing the marginal gains recorded in last two sessions amid net foreign selling. The main index lost 29.00 points or 0.41% to end at a 9-week low of 7,035.15 whereas S&P SL 20 index lost 18.05 points (-0.46%) to end at 3,906.28.

The losses were mainly driven by price declines in primary blue chip counters such as Commercial Bank (closed at LKR 161.30, -2.2%), Ceylon Tobacco (closed at LKR 912.00, -0.1%) and Sri Lanka Telecom (closed at LKR 45.00, -2.2%). Ceylon Tobacco touched a fresh 52wk low price of LKR 900.00, -1.2% during the session.

Daily market turnover was LKR 635mn. DFCC bank positioned at the top of the turnover list with LKR 100mn underpinned by single crossing where approximately 0.3mn shares changed hands at LKR 200.00 per share. DFCC crossing accounted for 9% of the market turnover while DFCC turnover represented 16% of the total market turnover.

Further, National Development Bank (LKR 86mn), National Development Bank (LKR 44mn) and Nation Lanka Finance (LKR 39mn) recorded next best contributions to the market turnover.

Despite the drop in index, gainers surpassed the losers 136 to 80 while 60 counters remained unchanged. 07 counters advanced to 52wk high prices while 09 counters declined to 52wk low prices. Cash map declined to 36% from 53%.

Furthermore, shares of Nation Lanka Finance, East West Properties, Anilana Hotels & Properties, Three acre farms and LB Finance were among heavily traded counters. Out of which East West Properties (LKR 17.00), Three acre farms (LKR 65.40) and LB Finance (LKR 239.00) recorded 52wk high prices.
Foreign investors turned to be net sellers with a net foreign outflow of LKR 103mn. Foreign participation was 21%. Net foreign outflows were mainly seen in National Development Bank (LKR 86mn), Laugfs Gas non-voting (LKR 12mn) and John Keells Holdings (LKR 10mn) while net foreign inflow was mainly seen in Hemas Holdings (LKR 6mn).

During the week the main index shed 26.13 points or –0.4% while S&P SL 20 index declined by 7.73 points or -0.2%. John Keells Holdings topped the weekly turnover list with LKR 1.4bn followed by Nation Lanka Finance (LKR 442mn) and Nations Trust Bank (LKR 322mn).

East West Properties (+21%), Anilana Hotels & Properties (+16%) and Asian Alliance Insurance (+16%) were among top gainers for the week whilst Entrust Securities (-10%), FLC Holdings (-7%) and Alufab (-5%) were among top losers for the week.

Foreign investors were net sellers for the week with a net foreign outflow of LKR 1.0bn. Foreign participation was 29%. Net foreign outflows were seen in John Keells Holdings (LKR 1.4bn), National Development Bank (LKR 86mn) and Laugfs Gas (LKR 63mn) while net foreign inflows were seen in Nations Trust Bank (LKR 318mn), Nation Lanka Finance (LKR 177mn) and MTD Walkers (LKR 13mn). Subsequent to the weekly outflows, year-to-date net foreign inflow declined to LKR 2.5bn.

The market PE remained unchanged at 13.5x while RSI (14-day) is at 32.0.

Meanwhile at the Treasury bill auction, yield of 3M and 6M yields remained unchanged at 6.08% and 6.18% respectively while 12M yield dropped by 1bps to 6.28%. Bids received amounted to LKR 58bn and it was decided to accept LKR 25bn.

Lanka Securities Research