Colombo equity market managed to divert from the bearish market sentiment after consecutive eleven sessions of losses. Market swung between gains and losses during the session to closed with mixed results on Tuesday. All shares index managed to bag 6.09 index points (0.09%) to end at 7,057.00 while 20-scrip S&P SL index declined for the fifth consecutive day by shedding 6.11 points or 0.15% to close at 4,029.30.

Increase in Main index was mainly driven by the price inclines in Commercial Leasing & Finance (closed at LKR 4.30, +4.9%), Ceylinco Insurance (closed at LKR 1,649.00, +9.9%), Ceylon Tobacco (closed at LKR 1,010.00, +0.5%) while price depreciations in Dialog Axiata (closed at LKR 11.10, -1.8%), Commercial Bank (closed at LKR 179.00, -0.4%), Aitken Spence (closed at LKR 101.00, -1.0%) dragged the S&P SL 20 index performance to the red zone.

Daily market turnover managed to record one month high of LKR 2.4bn. Daily turnover was mainly driven by the off-the-dealings of 14.1mn shares of Seylan Bank at a price range of LKR 99.00-106.00. Accordingly Seylan Bank emerged as the top contributor to the total turnover with LKR 1.6bn and accounted for 66% of the total turnover.

Meanwhile, numerous crossings were witnessed in John Keells Holdings (0.2mn shares at LKR 204.90), National Development Bank (0.1mn shares at LKR 260.10) and Hatton National Bank (LKR 0.1mn shares at LKR 235.00). Aggregate value of crossings represented 65% of the total turnover.

John Keells Holdings (LKR 255mn), Hatton National Bank (LKR 113mn) and National Development Bank (LKR 88mn) were next best contributors to the turnover.

Gainers outweighed the losers 98 to 81, while 58 counters remained unchanged. Cash map advanced to 50% from 43%. 16 counters touched 52wk low prices while Ceylinco Insurance non-voting counter managed reach and closed at 52wk high price of LKR 639.90 (+6.7%).

Both Seylan Bank counters attracted heavy investor preference and managed to advance notably. Voting counter inclined to LKR 100.00 (+3.1%) while non-voting counter increased to LKR 63.60 (2.4%). Further, John Keells Holdings, Eastern Merchants and Sanasa Development Bank were among most favored counters.

Board of MTD Walkers resolved to issue shares under an employee share option scheme where the company will issue a maximum of 3% of the issued shares of the company (approx. 5.0mn shares). Counter closed at LKR 51.00 (+2.0%).

Foreign investors bought LKR 212mn worth of shares extending their buying streak to eleventh consecutive day. Foreign participation was 13%. Net foreign inflows were seen in John Keells Holdings (LKR 224mn), Seylan Bank non-voting (LKR 29mn), Sampath Bank (LKR 26mn) while net foreign outflow was mainly seen in Hatton National Bank (LKR 76mn).

Further, CBSL issued LKR 14bn treasury bonds today which was oversubscribed more than three times. During the last three weeks CBSL offered LKR 65bn worth of Treasury bonds ranging three to thirty years. CBSL absorbed excess liquidity in the market by accepting LKR 117bn inducing an increase in the market interest rates. The new governments’ third monetary policy review will be released tomorrow.

Lanka Securities Research