Colombo bourse closed on the negative territory for the fourth-straight session ending the week on a lackluster note. Benchmark index advanced to 7,014 in the opening hours but failed retain the momentum and ended at 7,001.81, down by 4.54 index points or 0.06%. S&P SL20 index advanced by 0.10% or 3.66 index points to close at 3,787.00.

Today’s losses were mainly driven by high caps such as Trans Asia (closed at LKR 82.20, -7.5%), Nestle Lanka (closed at LKR 2,025.00, -1.2%) and Commercial Bank (closed at LKR 152.90, -0.7%).

Daily market turnover was LKR 779mn, the highest recorded turnover for the week. Dialog Axiata emerged as the top contributor to the turnover with LKR 154mn underpinned by three crossings of 8.7mn shares at LKR 11.10. John Keells Holdings (LKR 134mn), Central Industries (LKR 130mn) and Commercial Bank (LKR 67mn) were next best contributors to the turnover.

Single crossing was recorded in Commercial Bank (0.4mn shares at LKR 152.00) and aggregate value of crossings accounted for 20% of the total turnover.

Gainers offset losers, 96 to 89 while 57 counters remained unchanged. Cash map marginally declined from 48% to 45%. 05 counters managed to reach 52wk high prices while 35 counters declined to 52wk low price levels.

Subsequent to the positive profit growth in Central Industries, the counter attracted heavy investor preference and stepped to a new 52wk high price of LKR 119.90, up by 17.2%. Company witnessed a profit growth of 60%YoY during the September quarter.

Lanka Hospitals, John Keells Holdings and Access Engineering were among heavily traded stocks.

Several banks released their September quarter results today. Commercial Bank continued to lose ground amid the profit decline in 3Q2015. Counter declined to a 52wk low of LKR 151.00 but managed to close at LKR 152.90, -0.7%. Further, interim dividend of LKR 7.00 per share of National Development Bank boosted the share price despite the considerable profit decline for the quarter while Hatton National Bank closed the session on a positive note amid favorable profits. As per the 148 earnings reports released so far of  companies representing approximately 65% of the market cap, the September quarter earnings have inclined by 3.1%YoY.

Foreign investors were on the selling side with a net foreign outflow of LKR 54mn after three consecutive days of inflows. Foreign participation was 28%. Net foreign outflows were seen in Dialog Axiata (LKR 147mn), Commercial Bank (LKR 44mn), Ceylon Grain Elevators (LKR 6mn) while net foreign inflow was mainly seen in John Keells Holdings (LKR 95mn).

During the week benchmark index declined by 57.67 points or 0.82% while S&P SL 20 index shed 37.62 points or 0.98%. Central Industries (+11%), Lanka Hospitals (+10%) and Aitken Spence Hotel Holdings (+6%) were among the top gainers of the week while Lanka IOC (-8%), Swisstek (Ceylon) (-5%) and Asia Siyaka (-7%) were among the top losers.

The average weekly turnover declined by 23% to LKR 599mn. John Keells Holdings topped the weekly turnover list with LKR 539mn followed by Commercial Bank (LKR 201mn) and Dialog Axiata (LKR 201mn).

The foreign investors stood on the buying side for the week recording a net foreign inflow of LKR 230mn. Foreign activity improved from 30% to 35%. Net foreign inflows were mainly seen in John Keells Holdings (LKR 350mn), Asiri Hospital Holdings (LKR 38mn), Textured Jersey (LKR 35mn) while net foreign outflows were mainly seen in Dialog Axiata (LKR 176mn). Subsequent to this week’s net foreign inflow, year-to-date net foreign outflow reduced from LKR 3.8bn to LKR 3.6bn.

(Lanka Securities Research)