Bear run continues at Colombo stock market

The Colombo stock market continued its bearish run yesterday amidst weak investor sentiment.

The active S&P SL20 dipped by 0.9% and the benchmark ASPI by 0.5%. Turnover was Rs. 483 million involving 19 million shares. 

Asia Securities said the indices closed in the red for a second session, dragged by price declines in banking stocks, mainly in SAMP (-2.1%), NDB (-1.2%), and COMBN (-1.2%). Furthermore, price losses in VONE (-4.0%), LOFC (-1.8%), BIL (-1.8%), and CCS (-1.8%) added to the downward pressure on the ASPI. SAMP (-12 points), COMB (-7 points), and JKH (-6 points) were the main laggards for the day. The breadth of the market was negative with 93 price decliners and 54 gainers.

Turnover led by JKH (Rs. 90 million), CCS (Rs. 34 million), and HAYL (Rs. 32 million).

Foreigners recorded a net inflow of Rs. 2.6 million. Net foreign buying topped in GRAN at Rs. 2.7 million and selling topped in MELS at Rs. 4.6 million.

First Capital said the Colombo bourse experienced another day of downturn as investors maintained a bearish sentiment, resulting with the ASPI closing the day at 11,785, losing 57 points. Amidst the muted participation of HNWIs, retail investors exhibited a selling sentiment, while the banking sector counters, and index-heavy weights exerted negative pressure on the index. 

The Capital Goods sector contributed 38% to the overall turnover and dominated the overall turnover for the 4th consecutive time, whilst the Banking and Food, Beverage and Tobacco sectors jointly contributed 30% to the overall turnover. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings and Hayleys. Mixed interest was observed in Ceylon Cold Stores, Commercial Bank and Sampath Bank whilst retail interest was noted in Browns Investments, LOLC Finance and SMB Leasing. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index lost 0.93%. The share price of John Keells Holdings decreased by Rs. 2 to Rs. 200. The share price of Hayleys moved down by one Rupee to Rs. 98.40.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Ceylon Cold Stores) whilst the sector index decreased by 0.32%. The share price of Ceylon Cold Stores lost one Rupee to Rs. 56.

Commercial Bank and Sampath Bank were also included amongst the top turnover contributors. The share price of Commercial Bank recorded a loss of Rs. 1.25 to Rs. 101.75. The share price of Sampath Bank declined by Rs. 1.60 to Rs. 76.30.