Indices negative

Turnover dipped to a two-month low yesterday. Indices were in negative territory as many blue-chips were trading at lower prices although John Keells Holdings managed to close higher. This period of consolidation is viewed as an ideal opportunity to pick under-valued counters. The results season is upon us and we expect companies to post solid results. Retail participation was very little as the highest contributors to turnover were mostly blue-chips.

ASI dipped 95.64 points (1.69%) to close at 5,553.89, MPI lost 46.39 points (0.90%) to close at 5,090.09 and the S&P SL20 index lost 31.96 points (1.05%) to close at 3,010.02. Turnover was Rs. 257.1 million. Top contributors to turnover were John Keells Holdings with Rs. 39.1 million, Commercial Bank with Rs. 20.8 million and Chevron Lubricants with Rs. 20.6 million. Most active counters for the day were Swarnamahal Financial Services, Nation Lanka Finance and John Keells Holdings.

It was very rare to see a blue-chip such John Keells Holdings to be on the most actively traded list during the boom days.

Notable gainers for the day were Asia Asset Finance up by 3.9% to close at Rs. 2.70, Hotel Sigiriya up by 2.8% to close at Rs. 89.80 and Odel up by 2.2% to close at Rs. 23.60. Notable losers for the day were Trade Finance and Investments down by 10.1% to close at Rs. 13.30, Swarnamahal Financial Services down by 7.1% to close at Rs. 3.90 and Alufab down by 6.8% to close at Rs. 26.00.

Cash map for previous day was 41.62%. Foreign participation was 24% of total market turnover and net foreign buying was Rs. 36.1Mn.

Description: Lanka Securities Research