Colombo bourse slumped on Tuesday where the index failed to retain the momentum gained in the opening hours of the session. Concerns on economic conditions and budget proposals which is due on next month, are seemingly keeping the investors on the side lines.

All share index declined by 21.55 index points or 0.30% to end the session at 7,078.45 while 20-scrip S&P SL index shed 5.01 index points (-0.13%) to close at 3,811.21.

Price decreases in high caps such as Dialog Axiata (closed at LKR 11.10, -0.9%), Chevron Lubricants (closed at LKR 355.00, -3.1%) and Union Assurance (closed at LKR 163.00, -9.4%) pinned the index performance to the negative territory.

Daily market turnover reached LKR 1.2bn boosted by several crossings which accounted for 28% of the total turnover. Commercial Bank emerged as the top contributor to the turnover with LKR 170mn underpinned by two off-the-floor dealings of 0.9mn shares at LKR 155.50. John Keells Holdings (LKR 110mn), Hatton National Bank (LKR 83mn) and Hatton National Bank non-voting (LKR 76mn) were among next contributors to the turnover.

Several crossings were recorded in Hatton National Bank (0.3mn shares at LKR 215.00), Hatton National Bank non-voting (0.2mn shares a LKR 176.00) and Distilleries (0.2mn shares at LKR 276.00) and John Keells Holdings (0.3mn shares at LKR 170.00).

Out of 255 counters, 117 declined, 85 advanced while 53 remained unchanged. Cash map marginally declined from 47% to 45%. 8 counters managed reach 52wk high prices while 29 counters touched 52wk low prices.

Acme Printing was the most favored counter of the session where stock witnessed high retail participation. Stock advanced to LKR 10.20 but closed lower at LKR 9.70 (+1.0%). Further, poultry segment continued to retain the high investor preference, where all three counters closed with positive returns. Ceylon Grain Elevators (LKR 116.40) and Bairaha Farms (LKR 235.90) advanced to fresh 52wk prices while Three Acre Farms closed at LKR 158.90 (+2.7%).

Meanwhile, Capital Alliance Finance announced that the company is raising a sum of LKR 116mn (7.7mn shares at LKR 15.00 per share) via a right issue in order to increase the working capital to comply with the core capital requirements set by the Central Bank. The counter closed unchanged at LKR 15.00.

Further, Laugfs Gas voting (LKR 46.40) and non-voting (LKR 41.00) counters advanced to 52wk high prices. Moreover, finance sector counters namely DFCC Bank (LKR 175.00), National Development Bank (LKR 215.00), Union Bank (LKR 21.20), Commercial Leasing & Finance (LKR 3.90) and Amana Bank (LKR 4.80) declined to 52wk low price levels.

Foreign investors closed the session on the selling side with a net foreign outflow of LKR 278mn. Foreign participation was 32%.

Lanka Securities Research