Colombo stocks closed on 4 week low on Wednesday amid tense political situation. Main index shed 59.64 index points or 0.82% to close at 7,179.72 while 20-scrip S&P SL index dropped by 21.02 index points or 0.52% to end at 4,024.70.

Today’s losses were mainly driven by counters such as John Keells Holdings (closed at LKR 242.00, -1.1%), Nestle Lanka (closed at LKR 2,110.10, -2.2%) and Bukit Darah (closed at LKR 705.00, -2.8%).

Daily market turnover was LKR 1.7bn. Dialog Axiata emerged as the top contributor to the total turnover with LKR 445mn underpinned by several crossings of 18.3mn shares at LKR 13.10. John Keells Holdings and People’s Leasing & Finance were next best contributors to the turnover with LKR 395mn & LKR 154mn respectively. Both counters recorded crossings of 1.2mn shares at LKR 244.00 and 4.9mn shares at LKR 23.00 respectively. Aggregate value of crossings represented 38% of the total turnover.

Out of 272 counters, 170 slipped, 50 advanced while 52 remained unvaried. Cash map advanced to 50% from 39%. 13 counters touched 52wk low prices while Panasian Power counter reached 52wk high price level of LKR 2.80.

Following to the announcement of proposed acquisition of factory premises of Lanka Cement, counter traded heavily during the day. Stock touched 52wk low price of LKR 4.50 and counter closed at LKR 5.30 (-41.1%).

Textured Jersey, Access Engineering & Lanka IOC were among heavily traded counters during the session.

Price declines were seen in most of the manufacturing sector counters such as Royal Ceramic (closed at LKR 111.00, -3.5%), Piramal Glass (closed at LKR 4.70, -2.1%), Dipped Products (closed at LKR 135.00, -3.6%), Kelani Tyres (closed at LKR 72.00, -1.4%) and Lanka Tiles (closed at LKR 95.10, -13.6%).

Further, both telecommunication counters advanced during the day. Dialog Axiata closed at LKR 12.90 (+1.6%) & Sri Lanka Telecom closed at LKR 48.50 (+0.6%).

Foreign investors were net buyers for the 15^th consecutive day with net inflow of LKR 401mn. Foreign participation was 20%. Net foreign inflows were seen in counters such as Dialog Axiata (LKR 443mn), Hatton National Bank (LKR 48mn), Hemas Holdings (LKR 25mn) while net foreign outflow was mainly seen in John Keells Holdings (LKR 80mn).

At today’s weekly primary T-bill auction, 6 month & 12 month yield remained unvaried at 5.84% & 6.00%. Auction was oversubscribed by 2.2 times. 3 month bills were not offered today.

Lanka Securities Research