Colombo bourse started the weekly operations in negative territory on Monday amid bearish investor sentiments. Main index lost 21.44 points (-0.29%) to end at 7,287.59 while 20-script S&P SL index marginally lost 3.36 points (-0.08%) to end at 4,080.81. All share price index gained 133.69 points (+1.9%) so far this month whereas S&P SL 20 index gained 109.69 points (+2.8%).

Today’s losses were mainly driven by the counters such as Sri Lanka Telecom (closed at LKR 49.50, -3.7%), Commercial Leasing & Finance (closed at LKR 4.40, -6.4%) and John Keells Holdings (closed at LKR 248.50, -0.6%).

Daily market turnover recorded an 8 day low of LKR 350mn. John Keells Holdings positioned at the top of the turnover list with LKR 60mn followed by Distilleries (LKR 52mn) and Dipped Products (LKR 17mn). Only two crossings were recorded today in Distilleries where 0.24mn shares changed hands at LKR 206.00 per share. The crossings accounted for 14% of the market turnover.

Losers outweighed the gainers 116 to 54 while 45 equities remained unchanged. Cash map declined to 35% from 52%. Furthermore, only Lanka Century Investments (GREG.W0006) and Nation Lanka Finance recorded 52wk low price level while only Commercial Bank (non-voting) and Panasian Power reached 52wk high price levels.

Further Construction and Engineering sector counters such as MTD Walkers and Access Engineering Limited were most favored counters. Moreover shares of Blue Diamonds (non-voting), Lanka IOC and Union Bank were also among heavily traded counters.

Additionally most of large cap banking sector counters such as Sampath Bank (closed at LKR 235.00, -0.2%), Hatton National Bank (closed at LKR 194.10, -0.1%) and DFCC Bank (closed at LKR 216.70, -1.5%) declined today while National Development Bank (closed at LKR 245.00) advanced.

Foreign investors were net buyers for the fourth consecutive day with net inflow of LKR 48mn. Foreign participation was 31%. Net foreign inflows were seen in counters such as John Keells Holdings (LKR 57mn), Distilleries (LKR 49mn) and People’s Leasing (LKR 8mn) whereas net foreign outflow was mainly seen in HNB Assurance (LKR 4mn).

Furthermore MTD Walkers announced an interim dividend of LKR 0.50 per share.

Seylan Bank announced that the debentures of the bank will be listed on 31^st December 2014.

Lanka Securities Research