Colombo stock market closed lower on Thursday amid the political uncertainties. The bourse swung between gains and losses ahead of the special announcement by the President. Main index reached 7,126 mark in the morning hours but failed to maintain the positive momentum to decline marginally by 2.74 index points or 0.04% to end at 7,114.39. 20-scrp S&P SL index shed 3.29 points (-0.08%) to close at 4,026.32.

Price declines in telecommunication counters such as Dialog Axiata (closed at LKR 11.30, -2.6%), Sri Lanka Telecom (closed at LKR 47.00, -1.1%) dragged the index performance to red zone. Furthermore price changes in several high cap counters such as Hemas Holdings, Carson Cumberbatch and Commercial Bank also affected the index performance.

Daily market turnover was LKR 593mn. Nestle Lanka topped the turnover list with LKR 67mn followed by Distilleries and Textured Jersey Lanka with LKR 63mn and LKR 51mn respectively. Surprisingly, no crossings were recorded during the session.

Losers offset the gainers 92 to 86, while 53 counters remained unchanged. Cash map advanced to 55% from 49%. 6 counters managed to reach 52wk high prices while 4 counters touched 52wk low price levels.

Textile manufacturing counters such as Orient Garments, Textured Jersey and Hayleys MGT continued to attract high investor preference amid the positive prospects of GSP+ scheme. Orient Garments advanced by 38% to LKR 17.00 and was the top gainer of the session. Textured Jersey reached a fresh 52wk high price of LKR 27.40 but closed below at LKR 26.90 (+0.8%). Hayleys MGT declined by 0.5% to LKR 19.60.

Shares of Union Bank were among heavily traded counters subsequent to the positive earnings released by the company. Counter reached LKR 25.70 but closed lower at LKR 25.10 (-0.4%). Meanwhile, Chevron Lubricants advanced by 0.8% to LKR 401.00 supported by the first interim dividend of LKR 5.00 per share announced by the company.

Further, both Seylan Bank voting and non-voting shares managed to reach 52wk high price of LKR 103.00 and LKR 67.00 respectively. Main share closed at LKR 103.00 (+1.3%) while non-voting counter remained unchanged at LKR 66.00.

Foreign investors were net sellers for the day with a net outflow of mere LKR 2mn. Foreign participation was 26%. Net foreign outflows were seen in Union Bank (LKR 31mn), Hatton National Bank non-voting (LKR 17mn), Distilleries (LKR 15mn) while net foreign inflow was mainly seen in Nestle Lanka (LKR 66mn).

Lanka Securities Research