"There was more profit taking overall with some of the blue chips becoming cheaper in a general cooling off since last week’s activity," Prashan Fernando of Acuity Stockbrokers said. "But investors are positive and this looks like a temporary setback with recovery likely in a day or two."

JKH, largely retail driven, was the main contributor to turnover yesterday with nearly 0.2 million shares done between Rs.66.50 and Rs.68.50 with the counter down Rs. 1.75 to close at Rs.67.

There were no big JKH parcels done yesterday – the biggest being two of 10,000 shares each with many trades in the hundreds and a few in the thousands. The counter contributed Rs.10.3 million to the day’s turnover.

NTB too saw over 0.2 million shares done between Rs.28 and Rs.29 losing a rupee to close at Rs.28 generating a turnover of Rs.6.3 million.

An announcement by Lanka Ventures late on Monday that it has settled its long running tax dispute with Inland Revenue Department with no penalties to apply triggered some active trading in this stock between Rs.7.25 and Rs.8 with the counter up a rupee to close at Rs.7.75.

Retail activity on Lanka Cement continued with 0.4 million shares done between Rs.12.50 and Rs.13.25 with the share losing 50 cents to close at Rs.13.25.

Other blue chips traded yesterday including Commercial Bank, HNB, Associated Cables, Kelani Cables and the NDB were on relatively thin volumes with both ComBank and ACL declining while HNB and NDB closed up from the previous day.

Lanka Ventures said that the tax claims had been settled at Rs.137.4 million and not at Rs.235.5 million which included penalties of Rs.79.8 million. The company had made provision of Rs.130.2 million in its accounts and the total tax charge will be recognized in the year ended March 31, 2009. A contingent liability of Rs.105.3 million on account of this claim will be struck off the books.