Colombo equities edged lower on Tuesday as investors took a breather after five-day winning streak. Market sentiments were volatile amid the expectation of an increase in interest rates and mixed signals on corporate earnings. In the opening hours, bourse declined to 7,311.54 (-47.87 index points or -0.7%) but managed to close higher at 7,331.39 with a loss of 28.02 index points or 0.38%. 20-scrip S&P SL index declined by 0.64 index points (-0.02%) to end at 4,115.77.

Price movements in Ceylon Tobacco (LKR 1,051.00, -2.8%), Lanka IOC (closed at LKR 53.00, -8.3%) & John Keells Holdings (closed at 217.50, -1.1%) dragged index performance to red zone.

Daily market turnover was LKR 1bn. Chevron Lubricants emerged as the highest contributor to the turnover with LKR 150mn underpinned by two crossings of 0.2mn shares at 409.90 followed by Distilleries (LKR 121mn) supported by crossings of 0.3mn shares at LKR 230.00. Lanka IOC was third best contributor to the turnover with LKR 63mn. Aggregate value of crossings represented 14% of the total turnover.

Out of 251 counters, 80 advanced, 122 slipped while 49 counters remained unchanged. Cash map declined to 46% from 54%. 12 counters reached 52wk high prices while 7 counters reached 52wk low price levels.

Lanka IOC and Entrust Securities declined sharply to LKR 53.00 (-8.3%) and LKR 50.70 (-13.5%) respectively during the day as investors reacted to the weak third quarter profits. Meanwhile Hayley and Browns & Company advanced with the release of the favorable results. Unexpectedly Odel declined during the day to LKR 21.50 (-0.5%) despite the positive results and interim dividend of LKR 0.12 per share declared yesterday.

Swisstek and Vallibel Power counters attracted heavy investor preference during the day and both counters reached 52wk high price of LKR 45.60 & LKR 9.10 and closed at LKR 45.50 (+0.7%) & LKR 8.90 (-1.1%) respectively.
Meanwhile Textured Jersey Lanka announced that the company initiated an independent valuation and due diligence study for the purpose of acquiring the controlling stakes in Ocean India (Pvt) Ltd and Quenby Lanka Prints (Pvt) Ltd. During the day, counter reached 52wk high price of LKR 24.30 but closed lower at LKR 24.00 (-0.8%).
Foreign investors were net buyers for the fourth consecutive day with net inflow of LKR 28mn. Foreign participation was 35%. Net foreign inflows were seen in Sampath Bank (LKR 33mn), John Keells Holdings (LKR 25mn), Access Engineering (LKR 21mn) while net foreign outflow was mainly seen in Distilleries (LKR 48mn).

Lanka Securities Research