Colombo bourse edged lower on Monday amid profit taking in Blue-chip counters. Main share index lost 34.76 index points (-0.47%) to close at 7,300.75 while 20-scrip S&P SL index shed 36.36 index points or 0.88% to end at 4,076.83.

Price depreciations in blue-chips such as Bukit Darah (closed at LKR 686.00, -4.2%), John Keells Holdings (closed at LKR 213.00, -1.1%) & Lion Brewery (closed at LKR 612.00, -3.6%) affected the index performance unfavorably.

Daily market turnover was LKR 612mn. Convenience Foods emerged as the top contributor to the turnover with LKR 95mn. More than 13% of the issued shares of counter traded during the session subsequent to the almost 100% growth in quarter profit. Counter closed at LKR 310.00 (+3.4%).

John Keells Holdings recorded the second best turnover with LKR 73mn underpinned by a single crossing of 0.1mn shares at LKR 214.00. Further Vallibel Power (LKR 36mn) & Sanasa Development Bank (LKR 34mn) made notable contributions to the turnover.

Out of 240 counters, 79 advanced, 106 slipped while 55 counters remained unchanged. Cash map declined to 41% from 44%.5 counters reached 52wk high prices while 5 counters reached 52wk low price levels.

Lanka Aluminium, Sansa Development Bank & Vallibel Power were heavily traded during the day. Meanwhile Lanka Aluminium reached 52wk high price of LKR 71.00 but closed lower at LKR 68.00 (+10%). As per the earnings released last Friday, company profits grew nine folds during the December quarter.

Foreign investors were net buyers with a net inflow of LKR 36mn. Foreign participation was 17%. Net foreign inflows were seen in Lanka Milk Foods (LKR 21mn), Access Engineering (LKR 10mn), Tokyo Cement (LKR 4mn) while net outflow was mainly seen in John Keells Holdings (LKR 10mn).

Meanwhile Gestetner of Ceylon announced a rights issue to raise LKR 45.6mn at a proportion 01 new share for existing 6 shares at a price of LKR 120.00 per share.. Funds will be utilized to invest in software, equipment & manpower in pursuance of offering solution to customers adapting the global trends in IT and office automation sector.

Please note that CSE is closed tomorrow due to public holiday.

Lanka Securities Research