Selling pressure in blue-chip stocks dragged the Indices down on Wednesday and the ASI declined by 34.51 index points or -0.49% to end at a 11-week low of 7,050.87. S&P SL 20 index dropped 32.46 points (-0.84%) to end at 3,826.15. Main index lost 59.93 points or 0.8% during this week.

Today’s losses were mainly led by price declines in counters such as John Keells Holdings (closed at LKR 169.70, -1.7%), Commercial Bank (closed at LKR 159.00, -1.8%) and Hemas Holdings (closed at LKR 85.00, -4.4%). John Keells Holdings declined to a two month low of LKR 167.50 with a loss of -3%.

Both John Keells Holdings counters led the trades for the session. John Keells Holdings Warrant 0023 declined to LKR 36.00, -7.9%, but recovered to close at LKR 36.50, -6.7%. Further, Lanka IOC, Autodrome, HVA Foods and Sinhaputhra Finance Preference shares were traded heavily during the session.

Daily market turnover crossed the LKR 1bn mark for the second time in the week to record LKR 1.3bn underpinned by hefty negotiated deals recorded in Chevron Lubricants where 1.2mn shares changed hands at LKR 370.00 per share in two parcel trades. LLUB crossings accounted for 35% of the total market turnover. Other crossings were recorded in John Keells Holdings (0.7mn shares at LKR 170.00 per share) and Richard Pieris and Company (20.8mn shares at LKR 8.50 per share). Total crossings represented 58% of the market turnover.

Further, Chevron Lubricants positioned at the top of the turnover list with LKR 499mn supported by the crossings. John Keells Holdings (LKR 262mn), Richard Pieris (LKR 182mn) and Commercial Bank (LKR 38mn) recorded next best contributions to the turnover.

Market breath was negative with 114 counters declining, 71 counters rising while 58 counters remained unchanged. Cash map improved from 38% to 45%. 22 counters declined to 52wk low prices while Serendib Land (LKR 2,250.00, +25%), Autodrome (LKR 1,500.00, +54%) and Taprobane Holdings (LKR 5.50, +2%) recorded fresh 52wk high prices.

In addition Citizen Development Business Finance informed that ICRA Lanka Limited has assigned an issuer rating of BBB with a stable outlook.

Meanwhile, Brown & Company announced an interim dividend of LKR 0.30 per share.

Meanwhile, at today’s Treasury bill auction, CBSL has rejected bids on 12M T-Bills. 3M and 6M T-bill yields remained unchanged at 6.78% and 7.07% respectively. CBSL offered LKR 20.0bn worth of Treasury bills today and the auction was oversubscribed by 2.2 times with bids received amounting to LKR 44.5bn. It was decided to accept LKR 5.9bn worth of bills.

Foreign investors turned to be net sellers with a net foreign outflow of LKR 87mn. Foreign participation crossed the 50% mark for the third consecutive session and improved from 52% to 56%. Net foreign outflows were seen in Chevron Lubricants (LKR 83mn), Commercial Bank (LKR 15mn) and Piramal Glass (LKR 12mn) while net foreign inflow was mainly seen in John Keells Holdings (LKR 18mn).

Lanka Securities Research