Blue chips drag the market down

Despite the early gains, both indices plunged due to the fall in prices witnessed in blue chip counters such as Ceylon Tobacco Company, John Keells Holdings and Dialog Axiata. The turnover remained low despite the block trade witnessed in John Keells Holdings. Meanwhile, foreign activity remained subdued while retailers were seen active in Chilaw Finance.

Banking, Finance and Insurance sector was the top contributor to the market turnover (due to Ceylinco Insurance non-voting and Commercial Bank nonvoting) and the sector index decreased by 0.50%. The share price of Ceylinco Insurance non-voting went up by Rs 10.00 (0.03%) to close at Rs 400.00. The share price of Commercial Bank nonvoting increased by Rs 0.80 (0.84%) to close at Rs 94.20 while the counter’s foreign holding increased by 40,000 shares.

Diversified sector was the second highest contributor to the market turnover (due to John Keells Holdings and Hemas Holdings) and the sector index lost 0.77%. The share price of John Keells Holdings lost Rs 2.70 (1.00%) to close at Rs 267.00 while the share price of Hemas Holdings gained Rs 0.10 (0.30%) to close at Rs 33.20.

Telecommunications sector was also among the top turnover contributors for the day (due to Dialog Axiata) and the sector index dipped 1.98%. The share price of Dialog Axiata came down by Rs 0.20 (2.27%) to close at Rs 8.60.

Meanwhile, Kelani Tyres announced its interim dividend of Rs 1.65 per share.

Correction for the Daily Market Update on 24.07.2013: Foreign holdings of Textured Jersey increased by 610,000 shares while no change was seen in Bukit Darah.