Colombo shares failed to retain the positive momentum on Thursday and closed with negative returns. Core index lost 31.76 points or 0.44% to end at 7,257.07 and S&P SL 20 index lost 8.45 points or 0.21% to end at 4,056.39.

The losses were mainly driven by the drop in prices of counters such as DFCC Bank (closed at LKR 217.00, -3.4%), Sri Lanka Telecom (closed at LKR 50.90, -1.2%) and Lanka Orix Leasing Company (closed at LKR 86.00, -2.3%). Negative movements in sectors such as Trading, Services and Chemicals & Pharmaceuticals affected the index performance.

Cash map declined to 48% from 69%.

Daily market turnover was LKR 1.5bn. Several crossings were recorded in Commercial Bank (1.6mn shares at LKR 167.00-165.00 per share), John Keells Holdings (0.5mn shares at LKR 249.30 per share), Dipped Products (0.2mn shares at LKR 130.00 per share), Hemas Holdings (0.4mn shares at LKR 64.00 per share) and Hatton National Bank (0.1mn shares at LKR 145.00 per share). Aggregate value of crossings accounted for 29% of the total market turnover.

Accordingly Commercial Bank topped the turnover list with LKR 308mn followed by John Keells Holdings (LKR 154mn) and Lanka IOC (LKR 91mn).

Meanwhile shares of Alufab, Multi Finance and First Capital Holdings were traded heavily during the session. Additionally, BRAC Lanka Finance managed to attract heavy investor interest with the closure of the mandatory offer (counter closed at LKR 12.10, +25%).

Foreign investors were net buyers with net inflow of LKR 572mn worth of equities. Foreign participation was 35%. Net foreign inflows were seen in Commercial Bank (LKR 255mn), Lanka IOC (LKR 74mn) and Hemas Holdings (LKR 62mn) while net foreign outflow was mainly seen in Laugfs Holdings (LKR 10mn).

Meanwhile AARC Capital (Pvt) Ltd has purchased 50mn shares of Softlogic Capital at LKR 7.00 per share. Subsequent to the purchase their shareholding in Softlogic Capital is 10.2%.

Lanka Securities Research