Colombo bourse failed to retain the positive momentum gained in last eight trading sessions and both indices closed with negative returns. Benchmark All share price index lost 32.26 points or 0.44% to end at 7,320.89 and 20-script S&P SL 20 index lost 18.44 points or 0.45% to end at 4,086.25.

Losses were mainly driven by counters such as John Keells Holdings (closed at LKR 253.00, -1.6%), Dialog Axiata (closed at LKR 12.10, -2.4%) and Distilleries (closed at LKR 210.00, -1.6%).

Daily market turnover was LKR 2.0bn. Vallibel Power Erathna (VPEL) positioned at the top of the turnover list with LKR 1.2bn as 188mn shares were traded throughout the day.  Counter closed at LKR 6.90, -5.5%.

Further Commercial Bank (LKR 82mn), Lanka IOC (LKR 62mn) and Ceylon Guardian Investment Trust (LKR 56mn) were among next best contributors to the market turnover. Only two negotiated deals were recorded today where 0.3mn shares of Ceylon Guardian Investment Trust and 0.2mn shares of Commercial Bank changed hands at LKR 200.00 and LKR 169.30 per share respectively.

Further shares of Lanka IOC, People’s Leasing and Seylan Bank  nonvoting attracted heavy investor interest during the session.

Losers outweighed the gainers 131 to 74 while 65 counters remained unchanged. Cash map declined to 23% from 56%. 16 counters reached 52wk high prices while 07 counters touched 52wk low price levels.

Foreign investors were net sellers after five consecutive days of net inflows. Net foreign outflow of LKR 970mn was recorded today while foreign participation was at 35%. Net foreign outflows were seen in counters such as Vallibel Power (LKR 1.1bn), HNB Assurance (LKR 12mn) and Overseas Realty (LKR 7mn) while net foreign inflow was mainly seen in Commercial Bank (LKR 22m).

Meanwhile John Keells Holdings declared an interim dividend of LKR 1.00 per share.

At today’s weekly primary T-bill auction, 12 month yield remained unvaried at 6.00% while 3 month yield was at 5.84%.

Lanka Securities Research