Colombo equities failed to sustain the three day winning streak on Wednesday as both indices closed with negative returns. All Share Price index lost 26.80 points or 0.42% to end at 6,317.61 while S&P SL 20 index lost 21.58 points or 0.61% to end at 3,499.49. Price depreciation in index heavy counters such as John Keells Holdings (closed at LKR 226.00, -2.8%), Nestle Lanka (closed at LKR 1,920.00, -1.5%) and Asian Hotels and Properties (closed at LKR 69.10, -3.4%) contributed negatively to the index performance.

Daily market turnover reached LKR 714mn level underpinned by several negotiated deals recorded in Kelani Tyres (2.3mn shares at LKR 63.00 per share), Serendib Hotels (2.2mn shares at the price range of LKR 30.20-30.10), Commercial Bank (0.2mn shares at LKR 135.00 per share) and Ceylinco Insurance (0.02mn shares at LKR 1,405.00). Aggregate value of crossings represented 37% of the total market turnover. Kelani Tyre (LKR 148) positioned top at the turnover list followed by Serendib Hotels (LKR 65) and Commercial Bank (LKR 65).

Bansei Royal Resorts, John Keells Holdings warrant 0022 and ACME printing were among mostly traded stocks for the day. Lanka IOC, which declared the final dividend of LKR 1.50 per share managed to close higher at LKR 39.40, +1%.

Losers outweighed the gainers 103 to 83, while 65 equities remained unchanged. Cash map inclined to 51% from 47%.

Foreign investors were net sellers after 13 consecutive days of inflows. Net foreign outflow for the day was LKR 41mn and foreign participation was 25%. Foreign outflows were seen counters such as Kelani Tyres (LKR 148mn), John Keells Holdings (LKR 8mn) and Hatton National Bank (LKR 5mn) while foreign inflow was mainly seen in Serendib Hotels (LKR 65mn).

Touchwood Investments made an announcement to CSE informing that the Colombo Commercial High Court has appointed Mr G.K.S Kumar as a liquidator of the company from 5^th June 2014.

Meanwhile at the weekly primary T-bill auction held today, yield on 3 month and 6 month treasury bills dropped by 1bp to 6.53% and 6.71% respectively while 12 month Treasury bill yield remained unchanged at 7.00%.

Further Lucky Lanka Milk Processing Company is planning to raise LKR 300mn through an IPO of 38mn ordinary voting shares (at LKR 6.00 per share) and 24mn ordinary non-voting shares (at LKR 3.00 per share). The prospectus would be released on 26^th June 2014 and the IPO will be opened for subscriptions on 7^th July 2014.

Lanka Securities Research