Colombo equity market started weekly operations on a negative note where both indices shed returns gained on last week. Core index slipped 23.99 index points or 0.34% to close at 6,984.03 while 20-scrip S&P SL index declined 8.61 index points or 0.22% to end at 3,855.27. Price declines in counters such as John Keells Holdings (closed at LKR 243.00, +0.8%), Ceylon Cold Stores (closed at LKR 231.00, -5.1%) & Nestle Lanka (closed at LKR 2,130.00, -0.9%) negatively affected to the index performance.

Daily market turnover was LKR 1.2bn. Asia Asset Finance topped the turnover list with LKR 283mn followed by John Keells Holdings (LKR 271mn) & Renuka Shaw Wallace (LKR 65mn). A single crossing in today’s trading session was recorded in John Keells Holdings (0.2mn shares at LKR 243.00).

Out of 262 counters, 107 counters advanced, 106 counters declined while 49 counters remained unchanged. Cash map advanced to 52% from 43%. 27 equities reached 52wk high price levels.

HVA Foods, Renuka Shaw Wallace and Citrus Leisure warrant 0019 attracted heavy investor preference during the session.

Subsequent to the subdivision of United Motors’ shares, counter started trading during the session and closed at LKR 101.80, (+2.6%).

Meanwhile Asia Asset Finance (AAF) announced that Muthoot Finance Limited (India) has purchased approx. 168mn shares at LKR 1.60, which accounts for 29.98% of the total number of shares in issue. The seller was Asia Capital Plc.

Further, Cargills announced that company has entered into an agreement with International Finance Corporation (IFC) for an equity investment of LKR 2.55bn to subscribe for an 8% stake in the share capital of Cargills Foods Company (Pvt) Ltd, the fully –owned subsidiary carrying on the retail business of Cargills (Ceylon).

Foreign investors were net buyers with net inflow of LKR 446mn worth of stocks. Foreign participation was 28%. Foreign inflows were seen in counters such as Asia Asset Finance (LKR 256mn), John Keells Holdings (LKR 158mn), Textured Jersey (LKR 13mn) while foreign outflow was mainly seen in Tokyo Cement (LKR 6mn).

Lanka Securities Research