Colombo equities started monthly operations on a negative note where both indices shed hefty returns amid mixed corporate earnings. Main index declined by 25.10 index points or 0.35% to end at 7,195.19 recording a one month low while 20-scrip S&P SL index declined below 4,000 mark after six weeks, shedding 14.49 index points or 0.36% to end at 3,986.17.

Price depreciations in high capped counters such as Nestle Lanka (closed at 2,149.00, -2.3%), Aitken Spence Hotels Holdings (closed at LKR 75.60, -6.8%), Distilleries (closed at LKR 275.10, -1.5%) and John Keells Holdings (closed at LKR 194.00, -0.6%) affected index performance negatively.

Daily market turnover was LKR 731mn. John Keells Holdings emerged as top contributor to the turnover with LKR 161mn underpinned by a single crossing of 0.1mn shares at LKR 194.70. Crossing accounted for 3% of the total turnover.
Hatton National Bank, Seylan Bank and Kelani Cables were next best contributors to the turnover with LKR 65mn, LKR 33mn and LKR 31mn respectively.

Out of 257 counters, 128 declined, 80 advanced and 49 counters remained unchanged. Cash map declined to 50% from 55%. 8 counters managed to reach 52wk high prices while 12 counters touched 52wk low price levels.

Eastern Merchants, John Keells Holdings and Sierra Cables were heavily traded during the session. Eastern Merchants counter advanced to LKR 12.60 (+21.2%) but closed at LKR 12.00 (+15.4%), subsequent to the positive earnings released.

Industry sector stocks such as Alufab (LKR 52.00), Kelani Cables (LKR 104.50) and Lanka Walltiles (LKR 123.00) reached 52wk high price levels. Further, counters such as Central Industries, Asian Hotels & Properties and Hemas Holdings advanced supported with the dividends announcements.
Meanwhile, counters such as Lanka Orix Leasing Company, CIC Holdings, Tokyo Cement, Alliance Finance Company and Convenience Foods advanced during the session subsequent to the positive earnings released.

Foreign investors were net buyers snapping four day losing streak with a net foreign inflow of LKR 40mn. Foreign participation was 30%. Net foreign inflows were seen in John Keells Holdings (LKR 25mn), Hemas Holdings (LKR 13mn), Tokyo Cement non-voting (LKR 6mn) while net foreign outflow was mainly seen in Seylan Bank (LKR 5mn).

Lanka Securities Research