Colombo equities witnessed lackluster trading session on Tuesday where market closed with mixed results. Main index continued the losing streak for the sixth consecutive day shedding 6.28 index points (-0.09%) to end at 7,130.05 while 20-scrip S&P SL index marginally gained 2.99 index points (+0.07%) to close at 4,087.97.

Price declines in counters such as Ceylon Tobacco (closed at LKR 1,030.00, -1.9%), Good Hope (closed at LKR 1,601.00, -15.0%) and Carson Cumberbatch (closed at LKR 400.00, -1.2%) affected the market performance.

Daily market turnover recorded the second lowest turnover for the year of LKR 586mn. Two crossings of 0.4mn shares at LKR 205.00 lifted John Keells Holdings (LKR 144mn) in the turnover list. Nations Trust Bank and Commercial Bank emerged as next best contributors to the turnover with recording LKR 30mn each. Aggregate value of crossings represented 16% of the total turnover.

Out of the 248 counters, 111 advanced, 81 slipped while 56 counters remained unchanged. Cash map witnessed marginal improvement of 1% to 55% compared to the last trading session. 4 counters managed to reach 52wk high prices while 17 counters touched 52wk low price levels.

Sanasa Development Bank attracted heavy investor preference during the session subsequent to the announcement of final dividend. Company declared a cash dividend of LKR 2.50 per share coupled with a scrip dividend (DY-8.8%). Counter reached to 52wk high price of LKR 124.40 and closed lower at LKR 124.00 (+3.0%).

Meanwhile bargain hunting was seen in stocks such as First Capital Holdings, Entrust Securities, Lanka IOC and Tokyo Cement non-voting counters and these were the most favored stocks of the day.

Lanka Aluminium advanced by 2.5% to LKR 69.70 at the end of the trading session amid the announcement of interim dividend of LKR 1.50 (DY-2.2%). Surprisingly, share price of Asiri Surgical declined by 0.6% and closed at LKR 17.00 despite the dividend announcement of LKR 0.40 per share. Further, Asiri Hospital Holdings declared an interim dividend of LKR 0.50 per share. Stock closed at LKR 21.40 (+1.9%).

Foreign investors were net buyers for the sixth consecutive day with a net inflow of LKR 107mn. Net foreign participation was 40%. Net foreign inflows were seen in Commercial Bank (LKR 29mn), Distilleries (LKR 22mn) and Sampath Bank (LKR 17mn) while net foreign outflow was mainly seen in Sierra Cables (LKR 14mn).

Meanwhile Central Bank of Sri Lanka issued LKR 30bn treasury bonds during the day which spread from 7 years to 20 years. 7 year, 10 year and 20 year bonds were oversubscribed by 45.9x, 38.6x and 41.3x respectively.

Lanka Securities Research