Colombo equities started the weekly operations on a negative note continuing the bearish momentum amid thin market activities. The benchmark All share price index dropped to a nearly one month low of 7,136.33 with a drop of 47.17 points (-0.66%) while S&P SL 20 index lost 12.37 points or -0.30% to end at 4,084.68.

Core index declined 164.96 points (-2.3%) so far during this month whereas S&P SL 20 index lost 31.20 points (-0.76%). The market started to drop from 11th February 2015 amid the rising T-Bill rates and the main index lost 223 points or 3% since then. The T-Bill yields started rise sharply since mid-February where 3m yield increased by 109bps, 6M yield rose by 108bps and 12M yield rose by 94bps which negatively impacted the equity market performances.

Today’s losses were mainly driven by the price depreciation in counters such as Ceylon Tobacco (closed at LKR 1,050.00, -1.9%), Shalimar Malay (closed at LKR 1,900.00, -13.7%) and Commercial Leasing & Finance (closed at LKR 4.10, -4.7%).

Daily market turnover was LKR 645mn. John Keells Holdings emerged as the top contributor to the market turnover with LKR 293mn supported by several crossings where 1.2mn shares changed hands at LKR 205.00 per share. The crossings accounted for 37% of the total market turnover. Further Asiri Hospital Holdings (LKR 31mn) and Lanka IOC (LKR 29mn) recorded next best contributions to the turnover.

Out of 244 counters traded, 157 slipped, 41 advanced and 46 counters remained unchanged. Cash map improved to 54% from 40%. 16 counters dropped to 52wk low prices.
Shares of First Capital Holdings, Entrust Securities and Regnis Lanka were traded heavily during the session.

Foreign investors were net buyers for the fifth consecutive day with a net inflow of LKR 215mn. Foreign participation was 41%. Net foreign inflows were seen in John Keells Holdings (LKR 131mn), Asiri Hospital Holdings (LKR 30mn) and Hatton National Bank (LKR 16mn) while net foreign outflow was mainly seen in Keells Food Products (LKR 5mn).

Meanwhile Singer Sri Lanka announced that Mr. Hemaka Amarasuriya, chairman of the company will be retiring from his position on 31st March 2015. The nomination committee has nominated Dr. Saman Kelegama as the chairman of Singer Sri Lanka with effect from 01st April 2015.

Lanka Securities Research