Colombo bourse ended in negative territory on Thursday after three consecutive days of gains. Core index lost 20.69 points or 0.31% to close at 6,721.87 while S&P SL 20 index lost 12.53 points or 0.33% to close at LKR 3,748.52. Price declined in counters such as Sri Lanka Telecom (closed at LKR 55.00, -2.1%), Lion Brewery (closed at LKR 659.90, -2.1%) and Bukit Darah (closed at LKR 690.00, -1.4%) contributed adversely to the index performance.

Daily market turnover was LKR 926mn.  John Keells Holdings (LKR 279mn) positioned top at the turnover list followed by Arpico Finance (LKR 62mn) and FLC Holdings (LKR 33mn). Only single crossing was recorded in Hatton National Bank where approximately 0.1mn shares changed hands at LKR 173.00 per share.

Losers outweighed gainers 128 to 92, 57 counters remained unchanged. Cash map declined to 38% from 57%.

Meanwhile shares of E-Channeling, Nations Lanka Finance and Arpico Finance attracted considerable investor interest during the session. Moreover most of finance companies traded heavily today with the speculation on possible mergers within the industry under the Central Bank’s Consolidation policy drive.

Foreign investors were net buyers with a net inflow of LKR 163mn worth of equities. Foreign participation was 12%. Net foreign inflows were seen in John Keells Holdings (LKR 145mn), People’s Leasing (LKR 9mn) and John Keells Holdings warrant0023 (LKR 4mn) while net foreign outflow was mainly seen in Commercial Bank (LKR 6mn).

National Development bank and DFCC bank made a joint announcement to the CSE informing that they have engaged the Boston Consulting Group (India) Private Limited as their consultants to advice the banks on the amalgamation process. They further informed that the finality has not yet been reached on the aspects of consolidation.

Lanka Securities Research