Colombo bourse witnessed negative returns for the fifth consecutive day on Wednesday. ASI shed 23.83 index points or 0.33% to close at 7,199.73 while 20-scrip S&P SL index dropped by 17.85 index points (-0.44%) to end at 4,049.61. Price declines in John Keells Holdings (closed at LKR 245.00, -2.0%), Dialog Axiata (closed at LKR 13.00, -1.5%) & Lion Brewery (closed at LKR 605.00, -3.2%) affected index performance.

During the last five trading sessions, core index slipped by 54.55 index points (-0.8%) while S&P SL20 index declined by 33.80 index points (-0.8%).

Daily market turnover was LKR 1.3bn. Lion Brewery topped the turnover list with LKR 588mn underpinned by several crossings of 0.96mn shares at LKR 605.00. Crossings of Lion Brewery accounted for 44% of the total turnover. John Keells Holdings & Dialog Axiata were next best contributors to the turnover with LKR 185mn & LKR 98mn respectively.

Several crossings were recorded in Dialog Axiata (6.18mn shares at LKR 13.00) & Hatton National Bank (0.26mn shares at LKR 197.00). Aggregate value of crossings represented 52% of the total turnover.

Out of 229 counters, 96 slipped, 72 advanced while 61 counters remained unchanged. Cash declined to 37% from 47%. 3 stocks reached 52wk high prices while 5 stocks touched 52wk low price levels.

Subsequent to the listing of right issue shares of Renuka Holdings, both voting and non-voting counters declined sharply in the morning session, but managed to rebound and close higher. Voting share was the most traded counter for the day and closed at LKR 29.00 (-3.0%). Non-voting counter touched 52wk low of LKR 20.00 and closed on higher at LKR 21.50 (-1.4%).

Meanwhile both Seylan Bank & Singer (Sri Lanka) debentures were oversubscribed within hours of opening today.

Further Sanasa Development Bank announced that the right issue of the bank was oversubscribed. Counter closed at LKR 93.50, (-0.3%). Despite the announcement of receipt of LKR 6bn loan from CBSL, The Finance voting share declined by 5.0% to LKR 21.00.

John Keells Holdings, Blue Diamonds and Lanka IOC were among heavily traded counters.

Heavy cap banks such as Commercial Bank (LKR 168.00, -1.4%), Sampath Bank (LKR 235.00, -0.4%), Hatton National Bank (LKR 195.50, -0.3%) & National Development Bank (LKR 242.00, -0.1%) slipped during the day.

Foreign investors were net sellers with a net outflow of LKR 267mn snapping 4 consecutive days of net inflows. Foreign participation was 57%. Foreign net outflows were seen in Lion Brewery (LKR 139mn), Asian Alliance (LKR 6mn), Access Engineering (LKR 5mn) while net foreign inflow was mainly seen in Dialog Axiata (LKR 91mn).

At today’s weekly primary T-bill auction, 12 month yield increased by 1bps to 5.99% while 6 month yield remained unvaried at 5.83%. 3 month bills were not offered today. Auction was oversubscribed by 1.9 times.

Lanka Securities Research