Colombo bourse witnessed a sluggish trading session on Thursday, continuing the negative momentum for the fourth consecutive day to close in red zone. The main index weakened further falling to a 6-week low of 7,120.91 with a drop of 28.55 index points or -0.40% while 20-script S&P SL20 index dropped by 15.48 points (-0.39%) to end at a 7-week low of 3,945.54.

Price depreciations in counters such as Carson Cumberbatch (closed at LKR 414.80, -1%), Lanka Orix Leasing Company (closed at LKR 108.00, -0.9%) and Ceylon Tobacco (closed at LKR 970.00, -0.5%) affected negatively to the index performances. Further decline in John Keells Holdings also contributed adversely to the index where JKH record a 52wk low price of LKR 190.90, -1.4%, but managed to close at LKR 192.00, -0.8%.

Daily market turnover was LKR 713mn. John Keells Holdings topped the turnover list with LKR 119mn underpinned by two crossing where 0.3mn shares changed hands at LKR 192.00 per share. Commercial Bank (LKR101mn), People’s Leasing (LKR 46mn) and Distilleries (LKR 45mn) recorded next best contributions to the turnover.

In addition, other two crossings were recorded in People’s Leasing (1.8mn shares at LKR 24.00 per share) and Sampath Bank (0.1mn shares at LKR 265.00 per share). Total Crossings accounted for 17% of the market turnover.

Reflecting the lackluster investor sentiments, losers offset the gainers 123 to 89 while 54 counters remained unchanged. Cash map further declined to 35% from 44%. 07 counters dropped to 52wk low prices while 03 counters advanced to 52wk high prices.

Shares of Ceylon & Foreign Trades, Sinhaputhra Finance Preference & voting share, Laxapana Batteries and John Keells Holdings were among heavily traded counters.

Further Ceylon & Foreign Trades touched a 52wk high price of LKR 9.00, +21.6% following the significant profit growth (+.100%) recorded in the March quarter as a result of a notable revaluation of investment properties.

Moreover the company announced that the board of directors of the company has approved the revaluation of the investment property based on a valuation report as at 29th May 2015 and subsequent to the valuation the capital value of the investment property increased to LKR 1.8bn over current value and recognized a fair value gain of LKR 714mn. The counter closed at LKR 7.80, +5%.

Meanwhile Orient Garments made an announcement to CSE informing that the winding up case, came up for hearing on 04th June 2015 (today) was extended until 28th July 2015.

Additionally, Citizen Development Business Finance declared a first & final dividend of LKR 3.50 per share today and the counter (voting share) advanced and closed at LKR 105.00, +1.0%.

Foreign investors were net sellers for the second consecutive session with a net outflow of LKR 53mn. Foreign participation was 38%. Net foreign outflows were mainly seen in John Keells Holdings (LKR 42mn), Distilleries (LKR 31mn) and Dialog Axiata (LKR 9mn) while top net inflow was seen in Seylan Bank (LKR 13mn).

Lanka Securities Research