The historic coalition between the country’s two main political parties, UNP & SLFP, failed to uplift the apathetic sentiment in Colombo Bourse on Monday and the index edged lower, reversing the gains recorded in the previous session. The main share index closed at 7,042.30 with drop of 12.28 points (-0.17%) while S&P SL 20 index lost 14.13 points (-0.35%) to close at 4,002.77.

Price decline in counters such as Access Engineering (closed at LKR 20.20, -6.5%), Nestle Lanka (closed at LKR 2,300.00, -9%) and Overseas Realty (closed at LKR 24.40, -5.1%) affected adversely to the index performance.

Out of 229 counters traded 87 advanced, 81 declined while 61 counters remained unchanged. Cash map marginally declined to 50% from 51%. 22 counters dropped to 52wk low prices while only Seylan Bank non-voting share touched a 52wk high price of LKR 66.90 (+1%).

Daily market turnover was LKR 395mn. John Keells Holdings topped the turnover list with LKR 75mn supported by the single crossing of 0.3mn shares at LKR 206.50 per share. The crossing accounted for 13% of the market turnover. Textured Jersey (LKR 53mn), Access Engineering (LKR 53mn) and Hatton National Bank non-voting (LKR 16mn) recorded next best contributions to the market turnover.

Shares of Access Engineering, Textured Jersey, Overseas realty, John Keells Holdings and Hayleys MGT were among heavily traded counters of the session.

Overseas Realty announced a right issue during the trading session in the proportion of 01 for 19 at LKR 22.00 per share. Accordingly, the company intended to raise LKR 977mn via the right issue to purchase two floors of the World Trade Center Building and the surplus amount to be used for working capital needs. Subsequent to the announcement the counter declined to LKR 24.40, -5.1%.

Subsequent to the announcement of SEC directive on Citrus Kalpitiya, the counter declined to a 52 week low of LKR 3.50 with a drop of 5.1%.

Adding to the woes, the foreign investors turned net sellers today snapping the 14-day buying streak. Foreign investors sold LKR 8mn worth of shares and the foreign participation was 11%. Net foreign outflows were seen in counters such as Hatton National Bank non-voting (LKR 11mn), Textured Jersey (LKR 9mn) and John Keells Holdings (LKR 7mn) while net foreign inflow was mainly seen in Lanka Milk Foods (LKR 6mn).

Meanwhile, The Colombo Stock Exchange signed an agreement with BTA Consulting of the United Kingdom to provide Consultancy and Project Management services to set up a Clearing House which will act as a Central Counterparty (CCP) for settlement of securities, including shares, corporate debt, Government Securities and any other financial market instruments transacted in Sri Lanka.

Lanka Securities Research