Colombo equities showed a lack of direction throughout the trading session on Tuesday and ended the day little changed. Investors hovered on the sidelines with little incentive to make a notable move as domestic economic concerns and possibility of fed rate hike weighed on the investor sentiment.

The positive opening in todays’ session, failed to gain traction and the indices finished the session slightly below the unchanged line. The benchmark ASI closed at 7,152.43 with a drop of 10.01 index points or 0.1% while the liquid S&P SL 20 index closed at 3,915.13 with a decline of 4.48 points or 0.1%.

Premier blue-chips such as Carsons Cumberbatch (LKR 395.00,-1.3%), Dialog Axiata (LKR 11.20,-0.9%), Hemas Holdings (LKR 87.00,-1.6%) closed the day down driving the index performance to the negative zone.

Advancers were about even with decliners with 109 to 98, indicating the mixed sentiment. The cashmap declined from 61% to 49%. Five counters touched 52 week high price levels while 14 counters fell to 52 week low prices.

Thin volumes also contributed to the market’s lackluster session. The turnover was LKR 614mn, 47% down from the LKR 1.2bn average of the first eight months of this year. The top contributions to today’s turnover came from blue-chip banks, Commercial Bank (LKR 83mn) and Hatton National Bank (LKR 70mn). Off-the-floor deals were seen in Commercial Bank (0.2mn shares at LKR 168.00) and Central Finance (0.1mn shares at LKR 260.00) and the two crossings, both in the financial service sector, contributed 10% of the total turnover.

The poultry sector stocks gained further ground in todays’ session and Ceylon Grain Elevators and Three Acre Farms touched fresh 52 week high of LKR 90.00 and LKR 138.50 respectively.

John Keells warrant 22 extended losses and closed at a new low of LKR 8.50 (-5.6%), two weeks before its expiry date. With the forthcoming excise of warrants, voting share remained flat at LKR 174.70, trading with 8% premium to the exercise price.

Meanwhile, Kalamazoo Systems moved to a fresh 52 week high of LKR 2,945.40 extending its gains to 84% during past three sessions. Subsequent to the change in ownership on last Thursday, a mandatory offer for the company shares will be made by WDNH Perera at a price of LKR 1,067.70.

Foreign investors sold LKR 12mn worth of shares on net basis and foreign participation accounted for 27% of the total turnover. The top net outflows were seen in Commercial Bank (LKR 30mn), Hatton National Bank (LKR 12mn) and Three Acre Farms (LKR 8mn) while top net inflow was recorded in Central Finance (LKR 24mn).

Lanka Securities Research