Colombo bourse failed to retain the positive momentum gained yesterday and closed with negative returns amid the increase in T-bill yields. All Share Price index lost 13.52 points or 0.20% to end at 6,913.73 while 20- script S&P SL 20 index marginally lost 5.34 points (-0.14%) to end at 3,904.32.

Prices depreciations in counters such as Sri Lanka Telecom (closed at LKR 47.00, -1.9%), Dialog Axiata (closed at LKR 11.00, -1.8%) and DFCC Bank (closed at LKR 205.00, -2.3%) contributed negatively to the index performance.

Reflecting the lackluster investor sentiment, the daily market turnover reached a two week low of LKR 395mn. A single crossing was recorded in John Keells Holdings where 0.2mn shares changed hands at LKR 204.50 per share. The crossing accounted for 10% of the total market turnover.

Underpinned by the single crossing, John Keells Holdings emerged as the top contributor to the market turnover with LKR 82mn followed by Tokyo Cement (LKR 47mn) and Seylan Bank (LKR 39mn).

Out of 214 counters traded 79 counters advanced, 77 counters slipped while 58 counters remained unchanged. Cash map further declined today to 30% against 35% in the previous session. 10 counters declined to 52wk low prices while only Vidullanka remained at the 52wk high price of LKR 7.10.

Gestetner of Ceylon rights continued to attract investor preference during the session followed by Citrus Leisure Warrant 0019, John Keells Holdings Warrant 0022 and Entrust Securities.

According to a press release, Jaffna-Chunnakam Northern Power plant of MTD Walkers has reopened for essential maintenance and the employees returned to work on Monday. However despite the news the counters declined today to close at LKR 49.00, -1%.

Foreign investors were net buyers for the fifth consecutive session with a net inflow of LKR 61mn. Foreign participation was 31%. Net foreign inflows were seen in John Keells Holdings (LKR 66mn), Tokyo Cement (LKR 48mn) and Hemas Holdings (LKR 20mn) while net foreign outflow was mainly seen in Seylan Bank (LKR 37mn).

Meanwhile at today’s Treasury bill auction, T-Bill yields increased notably after nearly one month. 12M yield inclined by 14bps to 6.90% while 3M yield inclined by 15bps to 6.83% and 6M yield inclined by 1bp to 6.56%. CBSL offered LKR 24bn worth of Treasury bills today and the auction was oversubscribed by 2.2 times, with bids received amounting to LKR 53.8bn. It was decided to accept LKR 25.8bn.

Lanka Securities Research