Colombo equities slid on Thursday as benchmark indices failed to maintain a second day of gains. The ASI failed to sustain the initial gains and closed lower at 7,254.80 (-19.63 index points or -0.27%) despite continuous foreign capital inflow. S&P SL 20 index lost 10.38 points or 0.26% to end at 4,056.54.

Today’s losses were mainly driven by the counters such as Carson Cumberbatch (closed at LKR 422.30, -4.5%), Ceylinco Insurance (closed at LKR 1,272.50, -8.1%) and Lanka IOC (closed at LKR 57.30, -4.3%).

The lackluster trading session led the daily market turnover to close at nearly six week low of LKR 866mn while the market volume dropped to a 7 week low of 41mn shares.

Access Engineering topped the turnover list with LKR 131mn supported by two crossing where 2.2mn shares changed hands at LKR 37.80 per share. Colombo Dockyard and Commercial Bank bagged the second and third positions in the turnover list with LKR 77mn and LKR 72mn respectively.

Several other crossings were recorded in Colombo Dockyard (0.3mn shares at LKR 185.00 per share) and Sampath bank (0.1mn shares at LKR 233.00 per share). The aggregate value of crossings represented 18% of the total market turnover.

Out of 233 counters, 84 advanced, 89 slipped and 60 remained unchanged during the session. Cash declined to 45% from 59%. Sanasa Development Bank rights and Panasian Power reached 52wk high price levels while 4 counters touched 52wk low price levels.

Moreover Lanka Cement, HVA Foods and Sanasa Development Bank rights were among mostly preferred stocks during the session.

Sanasa Development Bank rights commenced trading today and closed at LKR 13.60 with a drop of -31%. Following the right issue, the main counter also dropped by 6.2% to end at LKR 93.50.

Ceylon Tea Services advanced to LKR 749.00 (+ 7%), subsequent to the interim dividend announcement of LKR 12.50 which was made yesterday.

Bullish sentiments from the foreign investors continued for the 21^st consecutive session as foreign investors closed the session as net buyers with a net inflow of LKR 143mn. Foreign participation was unchanged at 31%. Net foreign inflows were seen in counters such as Access Engineering (LKR 120mn), Commercial Bank (LKR 71mn) and Dialog Axiata (LKR 50mn) while net foreign outflow was mainly seen in Nations Trust Bank (LKR 39mn).

Meanwhile Vidullanka declared an interim dividend of LKR 0.10. The counter closed at LKR 5.80,+7.4%.

Further Hatton National Bank announced that the bank’s debenture issue was oversubscribed and it was closed today.

Lanka Securities Research