Colombo equities stretched the losses for the fourth consecutive day on Tuesday as both indices closed with notable losses. All Share Price index lost 52.29 points (-0.72%) to end at 7,161.16 while S&P SL index lost 29.51 points (-0.74%) to end at 3,978.65.

The core index has dropped 127.67 points or 1.8% in last four sessions whereas 20-script S&P SL index has dropped 86.19 points or 2.1%.

The losses were mainly driven by counters such as Commercial Bank (closed at LKR 159.00, -1.2%), Commercial Leasing & Finance (closed at LKR 4.60, -4.2%) and Ceylinco Insurance (closed at LKR 1,302.00, -3.6%).

Negative movement in sectors such as Footwear & Textiles, Land & Property and Banks Finance & Insurance affected adversely to the index performance.

Daily market turnover was LKR 898mn. John Keells Holdings positioned at the top of the turnover list with LKR 279mn followed by Commercial Bank (LKR 140mn) and Dipped Products (LKR 44mn). No crossings were recorded during the session.

Out of 264 shares traded, 158 slipped, 46 advanced and 60 counters remained unchanged. 04 counters reached 52wk high price levels while 05 counters touched 52wk low price levels. Cash map declined marginally to 36% from 38%.

Meanwhile shares of First Capital Holdings, Madulsima Plantations and Alufab were traded heavily during the session.

Foreign investors were net buyers with net inflow of LKR 165mn. Foreign participation was 40%. Net foreign inflows were seen in counters such as John Keells Holdings (LKR 127mn), Laxapana Batteries (LKR 9mn) and ACL Cables (LKR 7mn) while net foreign outflow was mainly seen in Hemas Holdings (LKR 7mn).

Subsequent to the allotment of 204mn shares through the rights issue, the total shareholding of Muthoot Finance in AAF has reached to 44.3%. Muthoot Finance will make a mandatory offer to purchase balance 467mn ordinary shares (55.67%).

Meanwhile, Amana Takaful announced a rights issue where the company will raise LKR 400mn (In the proportion of 1 for 2 at LKR 0.80 per share).

Further Browns Hotels & Resorts which is a fully owned subsidiary of Browns Investment (BIL) signed an agreement to develop a 4-star hotel (150 rooms and 100 apartments) in Male Island, Maldives. The cost of the investment is USD 9.5mn.

Lanka Securities Research