Colombo equity market witnessed negative returns on Wednesday amid sluggish activity seen among the foreign investors. ASI lost 28.41 index points or 0.41% to end at 6,984.91 while 20-scrip S&P SL index slipped by 9.02 index points or 0.23% to close at 3,842.83. Price declines in counters such as Lion Brewery (closed at LKR 606.00, -5.0%), Nestle Lanka (closed at LKR 2,112.00, -1.8%), Sri Lanka Telecom (closed at LKR 54.10, 0.9%) affected the index performance.

After 17 consecutive trading sessions, market failed to cross the LKR 1bn turnover mark. Daily market turnover was LKR 742mn. Seylan Developments topped the turnover list with LKR 42mn followed by John Keells Holdings (LKR 38mn) & Laugfs Gas - non-voting (LKR 33mn). The session’s only crossing was recorded in Seylan Developments (2mn shares at LKR 14.00).

Out of 283 counters, 124 counters slipped, 93 counters advanced while 66 counters remained unchanged. Cash map declined to 47% from 54%. 22 counters reached 52wk high prices and single equity touched 52wk low price level.

During the session, investors were attracted to penny counters such as Lanka Century Investments warrant 0006, Taprobane Holdings and F L C Holdings. Further Richard Pieris was among heavily traded equities for the second consecutive day.

Foreign investors were net sellers with net outflow of LKR 3mn. Foreign participation was 8%. Foreign outflows were seen in counters such as John Keells Holdings (LKR 17mn), Lanka Century Investments warrant 0006 (LKR 10mn), Convenience Foods (LKR 5mn) while foreign net inflow was mainly seen in Sampath Bank (LKR 10mn).

At the weekly primary T-bill auction, yield on both 6 month and 12 month treasury bills remained unvaried where at 6.28% & 6.30% respectively. Further 3 months treasury bills were rejected at the auction.

Lanka Securities Research