Colombo equity market started its weekly operations on Monday with negative returns as main bourse declined by 3.10 index points or 0.05% to close at 6,299.35 while 20-scrip S&P SL index declined by 3.93 index points or 0.11% to end at 3,474.93. Price depreciations in counters such as John Keells Holdings (closed at LKR 220.30, -0.2%), Nestle Lanka (closed at LKR 1,937.00, -0.7%) and National Development Bank (closed at LKR 195.00, +2.0%) contributed negatively to the index performance.

Daily market turnover reached to LKR 867mn with the support of off-the-floor deals in Dunamis Capital (6.41mn shares at LKR 16.00), Commercial Bank (1.01mn shares at LKR 133.00-133.90) and Distilleries (0.10mn shares at LKR 205.10). Aggregate value of crossings represented 30% of the total market turnover.

Accordingly Commercial Bank topped the turnover with LKR 187mn followed by John Keells Holdings (LKR 186mn) and Dunamis Capital (LKR 104mn).

Losers outweighed gainers 111 to 82, while 64 counters remained unchanged. Cash map marginally declined to 40% from 41%. 11 counters managed reach 52wk high prices while 4 equities touched 52wk low price levels.

Moreover, PC Pharma, Ceylon Leather Products warrant 0014 and John Keells Holdings attracted heavy investor participation. Further, Kandy Hotels declared a final dividend of LKR 0.20 per share. Stock closed at LKR 6.80 with no change.

Further NDB Capital Holdings announced that the board of directors has made a decision to initiate the process of de-listing the ordinary shares of the company from the CSE subject to shareholder and regulatory approvals. The board of directors has also made arrangements with National Development Bank for the purchase of shares from minority shareholders to divest their shares at LKR 600.00 per share.

Subsequent to the announcement made by Lion Brewery regarding the acquisition of Millers Brewery Pvt Ltd from Cargills (Ceylon) both stock closed with higher returns. Shares of Lion Brewery hit an intra-day high of LKR 480.00 and closed at 455.00 (+2.5%) while Shares of Cargills (Ceylon) closed at LKR 152.50 (+4.2%).

Foreign investors were net sellers with LKR 180mn worth of equities. Foreign participation was 41%. Foreign outflows were seen in counters such as Dunamis Capital (LKR 96mn), John Keells Holdings (LKR 9mn), John Keells Holdings warrant 0022 (LKR 3mn) while foreign inflow was mainly seen in Hemas Holding (LKR 41mn).

Lanka Securities Research