Colombo equities closed almost unchanged on Tuesday with early gains after two days of heavy losses were wiped out in the afternoon session. ASI advanced by 95.25 index points to reach 7,330.50 within minutes of the market's opening but selling pressure gradually increased thereafter and the index dropped to 7,239.36. Core index slightly bagged 4.11 index points or 0.06% while S&P SL20 index advanced by 0.78 index points or 0.02% to close at 4,045.72. Price appreciations in counters such as Nestle Lanka (closed at LKR 2,183.00, 3.4%), CT Holdings (closed at LKR 149.00, +6.4%) and Distilleries (closed at LKR 206.00, +1.2%) contributed positively to the index performance.

Daily market turnover was LKR 1.1bn. Commercial Bank emerged as the top contributor the total turnover with LKR 144mn supported by single crossing of 0.3mn shares at LKR 170.00. John Keells Holdings and Hatton National Bank were next best contributors to the turnover with LKR 72mn and LKR 59mn respectively.

Further, 1.0mn shares of Union Bank changed hands in a single crossing at a price of LKR 25.00. Aggregate value of crossings represented 7% of the total turnover.

Gainers outweighed the losers 137 to 81, while 43 counters remained unchanged. Cash map remained unvaried at 39%. 8 counters touched 52wk low prices while Panasian Power counter reached 52wk high price level of LKR 2.80.

Access Engineering, People’s Leasing & Finance and Lanka IOC were most favored counters during the session.

Meanwhile, Lanka Cement informed that the Ministry of Defence has taken steps to acquire the land (104 acres extent) & building at Kankesanthurai. Company has requested compensation for land & building from the Ministry. Further all staff will be retired under the government sponsored voluntary retirement scheme. Counter reached to LKR 9.50 in todays’ trading session & closed at LKR 9.00 (+1.1%).

Further On’ally Holdings announced an interim dividend of LKR 1.10 per share (DY: 1.7%).

Most of the banking sector counters advanced during today’s trading session. Price inclines were recorded in Hatton National Bank (closed at LKR 196.00, +1.6%), Commercial Bank (closed at LKR 170.00, +0.4%), Sampath Bank (closed at LKR 233.00, +0.4%), Nations Trust (closed at LKR 95.30, +0.3%), Pan Asia Bank (closed at LKR 24.70, +5.6%) and Amana Bank (closed at LKR 5.10, +2.0%). While declines were seen in National Development Bank (closed at LKR 248.00, -0.8%), DFCC Bank (closed at LKR 215.00, -0.2%), HDFC Bank (closed at LKR 63.00, -3.8%), Sanasa Development Bank (closed at LKR 87.50, -2.9%), Seylan Bank (closed at LKR 93.40, -0.6%).

Foreign investors closed as net buyers for 14^th consecutive day with a marginal net inflow of LKR 5mn worth of equities. Foreign participation was 24%. Net foreign inflows were seen in Commercial Bank (LKR 125mn), Hatton National Bank (LKR 51mn), Hemas Holdings (LKR 18mn) while net foreign outflow was mainly seen in John Keells Holdings (LKR 18mn).

Lanka Securities Research