Stocks fell for the third straight day amid concerns over rising interest rates. ASI closed three week low of 7,202.20 with a drop of 32.72 points (-0.45%) while S&P SL 20 index lost 15.45 (-0.38%) points to close at 4,092.84.

Moreover Dialog Axiata (closed at LKR 11.50, -0.9%) and Sri Lanka Telecom (closed at LKR 47.00, -1.3%) declined today as Fitch rating released credit negative report for the telecom companies. Further the price depreciations in counters such as Carson Cumberbatch (closed at LKR 404.90, -1.1%) and Asian Hotels & Properties ( closed at LKR 65.00, -2.8%) also adversely affected the index performance.

Daily market turnover was LKR 639mn. Several crossings were recorded in Nations Trust Bank (0.4mn shares at LKR 105.00 per share), John Keells Holdings (0.2mn shares at LKR 205.00 per share) and Hemas Holdings (0.3mn shares at LKR 78.00 per share). The total crossings accounted for 16% of the market turnover.

Further John Keells Holdings emerged as the top contributor to the market turnover with (LKR 96mn) followed by Nations Trust Bank (LKR 46mn) and Distilleries (LKR 45mn).

Losers surpassed the gainers 128 to 50 while 63 counters remained unchanged. Cash map marginally declined to 44% from 47%. 03 counters reached 52wk high prices while 14 counters dropped to 52wk low prices.

Furthermore, shares of First Capital Holdings, Entrust Securities and Lanka IOC traded heavily during the session. First Capital Holdings and Entrust Securities, which were used as bond proxy by investors in a low rate environment, declined sharply today. First Capital Holdings closed at LKR 35.50, -9.2% and Entrust Securities closed at LKR at LKR 33.80, -9.6%.

Foreign investors were net buyers for the third consecutive day with a net inflow of LKR 43mn. Foreign participation declined to 32% from 41%. Net foreign inflows were seen in John Keells Holdings (LKR 32mn), Access Engineering (LKR 30mn) and Hemas Hidings (LKR 23mn) while net foreign outflow was mainly seen in Hatton National Bank (LKR 21mn).

Lanka Securities Research