Volatility returned to Colombo bourse on Tuesday after two consecutive days of gains, as investors reacted to the developments in the political front. Market gained 34.09 points in the morning session but failed to maintain the positive momentum and declined sharply in the latter half. The main index lost 45.10 points (-0.62%) to end at 7,230.58. S&P SL 20 index lost 15.54 points (-0.38%) to end at 4,025.13.

Today’s losses were mainly driven by counters such as Nestle Lanka (closed at 2,110.00, -2.3%), Dialog Axiata (closed at LKR 13.00, -0.8%) and Sri Lanka Telecom (closed at LKR 47.30, -2.5%) contributed negatively to the market performance.

Daily market turnover reached LKR 1.0bn with the support of several crossings recorded in Access Engineering (6.6mn shares at LKR 38.00 per share), Lanka IOC (0.5mn shares at LKR 60.00 per share) and Tokyo Cement (0.4mn shares at LKR 65.00 per share). Total crossings accounted for 30% of the market turnover. Access Engineering positioned at the top of the turnover list with LKR 305mn followed by Commercial Bank (LKR 62mn) and PCH Holdings (LKR 54mn).

Losers surpassed the gainers 112 to 86, while 53 equities remained unchanged. 05 counters touched 52wk low prices while only Asia Asset Finance reached 52wk high price level. Cash map declined to 50% from 61%.

Moreover Lanka Cement, Access Engineering and Sierra Cables were among mostly traded stocks during the session.

Foreign investors closed as net buyers for 19^th consecutive session with a net inflow of LKR 362mn. Foreign participation was 26%. Net foreign inflows were seen in counters such as Access Engineering (LKR 266mn), Commercial Bank (LKR 55mn) and Tokyo Cement (LKR 31mn) while net foreign outflow was mainly seen in Kahawatta Plantations (LKR 17mn).

Further Chevron Lubricants Lanka declared their fourth interim dividend of LKR 5.50 per share.

Meanwhile Ceylon and Foreign Trades announced that the company purchased land and buildings in Lot I, No: 258, M Vincent Perera Mawatha, Colombo 14 for a total consideration of LKR 1.0bn. The counter closed at LKR 7.90,-2.5%.

Lanka Securities Research