Adani terminal deal fails to lift Colombo bourse

• Both indices end in red; turnover at Rs.1.23bn
• Net foreign outflow tops Rs.100mn 

The confirmation of India’s Adani Group’s involvement in the West Container Terminal of the Port of Colombo failed to lift stock market sentiments yesterday, as both indices ended in red.
Adani Group on Monday went on record saying that they would invest in a 51 percent stake in the West Container Terminal of the Colombo Port, which is yet to be constructed at an estimated cost of US$ 750 million.

Premier blue chip, John Keells Holdings PLC, which would be the local partner for Adani said, they would also have a “material stake” in the terminal venture.

However, JKH share closed at Rs.148.50 yesterday, just 50 cents or 0.34 percent up from the previous close. Meanwhile, the benchmark All Share Price Index (ASPI) lost 40.71 points or 0.57 percent to close at 7, 119.70, while the more liquid S&P SL20 Index lost 17.30 points or 0.60 percent to close at 2, 845,51.

The market turnover was Rs.1.23 billion. However, the trading volume climbed to 83.2 million from 31.5 million in the previous session.

NDB Stockbrokers said indices closed in red as a result of price losses in counters such as Hayleys, Expolanka Holdings and LOLC Holdings. 

They also said high net worth and institutional investor participation remained subdued yesterday.

Foreign investors were net sellers yesterday, offloading Rs.101.3 million worth of shares.