Colombo stock market extended the losing streak on Tuesday as investors stayed on sidelines amid domestic and global economic concerns. Bourse continued to witness lackluster trading activity where turnover recorded another year-to-date low of LKR 341mn. All share index slashed 31.96 index points or 0.50% to close the session at 6,322.87 while 20-scrip S&P index declined by 20.51 index points (-0.62%) to end at 3,278.15.

High investor activity was seen in premier, John Keells Holdings (closed at LKR 153.70, -2.1%) which slipped to a one year low of LKR 150.10 driving the index to the red territory. Script recorded a turnover of LKR 153mn and grabbed 45% of the total turnover. Along with the voting share, JKH warrant slipped to LKR 17.60 (-3.8%).

Further, subsidiary of JKH, Ceylon Cold Stores (closed at LKR 405.00, -4.7%) and large cap, Distilleries (closed at LKR 214.40, -2.1%) contributed negatively to the index performance. On the other side, Dialog Axiata stood out from high caps to post gains of 2% to close at LKR 10.20.

Asia Assets Finance recorded the next best turnover of LKR 42mn with the support of off-the-floor dealing of 25mn shares at LKR 1.50 per share. Moreover, Sampath Bank (LKR 14mn), National Development Bank (LKR 14mn) and Distilleries (LKR 9mn) were among top turnovers.

Market breadth was negative where out of 222 counters, 102 slipped, 74 advanced while 46 remained unchanged. Cash map stood still at 40%. 22 counters touched 52wk low price levels while People’s Insurance managed to reach a 52-wk high of LKR 16.20, +0.6%.

LB Finance attracted high investor attention following the 71% earnings growth recorded for 3QFY16 and script closed high at LKR 109.00, +2.8%. Meanwhile, private placement shares of Softlogic Finance were listed during the session and script closed flat at LKR 46.80.

Foreign investors closed the session on buying side with a net foreign inflow LKR 3mn. Foreign participation was 30%. Net foreign inflows were seen in Asia Asset Finance (LKR 39mn), Vallibel One (LKR 6mn), National Development Bank (LKR 1mn) while net foreign outflow was mainly seen in John Keells Holdings (LKR 18mn).

Lanka Securities Research