Colombo bourse started the weekly operations with negative returns on Monday as ASI declined by 16.48 index points or 0.23% to end at 7,089.06 while S&P SL 20 index declined by 10.52 points (-0.27%) to end at 3,830.23.

Price depreciation in counters such as Sri Lanka Telecom (closed at LKR 49.10, -0.2%), Ceylon Tobacco (closed at LKR 965.00, -0.04%) and John Keells Holdings (closed at LKR 168.00, -1.18%) contributed adversely to the index performance.

Beverage Food & Tobacco segment declined (-0.5%) today subsequent to the government’s decision to increase the excise duty on cigarettes & liquor. Ceylon Beverage Holdings (closed at LKR 860.00, -0.01%), Distilleries (closed at LKR 272.00, -0.36%) recorded negative returns.

Daily market turnover fell below LKR 1bn mark after three consecutive sessions to record a nearly two week low turnover of LKR 641mn. DFCC Bank emerged as the top contributor to the market turnover with LKR 83mn supported by two negotiated deals where 0.4mn shares changed hands at a price range of LKR 180.00-180.50. The counter recorded a new 52wk low price of LKR 178.70, -1.6%, but closed at LKR 180.00, -0.9%.

Further, Textured Jersey (LKR 64mn), Chevron Lubricants (LKR 47mn) and ACL Cables (LKR 39mn) recorded next best contributions to the market turnover.

Despite the lackluster investor sentiments gainers outweighed the losers 102 to 94 while 56 counters remained unchanged. Driven by the selling pressure the cash map declined further from 50% to 47%. 05 counters advanced to 52wk high prices while 12 counters declined to 52wk low prices.

Shares of Sinhaputhra Finance preference share led the trades followed by Hayleys Fabrics, Ceylon Grain Elevators and Textured Jersey.

Both textile sector counters recorded fresh 52wk high prices where Hayleys Fabrics advanced to LKR 20.20, +4.1% (closed at LKR 20.10, +3.6%) and Textured Jersey recorded a 52wk high price of LKR 33.30, +3.4% (closed at LKR 32.90, +2.2%). Further, entire poultry sector closed with positive return in today’s session where Bairaha Farms advanced to a fresh 52wk high price of LKR 208.00, +2.9%.

Foreign investors continued to be net sellers with a net foreign outflow of LKR 61mn. Foreign participation was low at 14%. Net foreign outflows were seen in John Keells Holdings (LKR 27mn), Commercial Bank (LKR 20mn) and Commercial Bank non-voting (LKR 8mn) while net foreign inflow was mainly seen in Sanasa Development Bank (LKR 4mn).

Lanka Securities Research