Bourse begins fresh week with sharp dip

Tuesday, 28 June 2022 00:41 - - {{hitsCtrl.values.hits}}

The Colombo stock market began a fresh week with a sharp dip with investor sentiment dampened by macro factors.

The active S&P SL20 declined by 3.6% and the benchmark ASPI by 2.6%. Turnover improved to Rs. 1.4 billion involving 56 million shares.

The indices closed sharply lower on Monday due to heavy selling pressure in frontline stocks as retail and HNI investors maintained a “wait-and-see” approach amid a worsening fuel shortage and the ongoing IMF discussions with the Government.

The ASPI opened trading on a downbeat note and remained in negative territory throughout the session mainly due to hefty price declines in EXPO (-7.8%), LOLC (-6.9%), LOFC (-9.3%), BIL (-10.5%), and VONE (-6.9%). The index closed out the session with a loss of 199 points (-2.6%) at 7,452 and the S&P SL20 index ended at 2,381, declining 89 points (-3.6%) during the session. Turnover was supported by LIOC (Rs. 292 million), EXPO (Rs. 272 million), COMB (Rs. 203 million) and BIL (Rs. 163 million). Overall, 36 stocks ended higher for the day while 136 recorded price losses.

Asia also said foreigners recorded a net inflow of Rs. 22.5 million while their participation was flat at 1.9% of turnover (previous day 3.9%). Net foreign buying topped in HAYL at Rs. 15.1 million and selling topped in CTC at Rs. 9.1 million.

First Capital said the Bourse plunged deeply into the red zone while continuing its downward trend as investors were compelled to set on a selling spree following the announcement of delayed shipments of fuel and its implications on the economy and corporates. Index broke the psychological barrier of 7,500 and continued to tumble till the end of the session while closing the day at 7,452, losing 199 points (down 2.6%).

Moreover, EXPO contributed largely to the ASPI dip as the counter is nearing the ex-dividend date. Despite that, turnover improved to Rs. 1.4 billion (compared to the previous week average turnover of Rs. 0.9 million) led by a sole contribution of 20% from LIOC in response to the fuel price hike during the weekend, while another 15% was contributed through crossing transactions of COMB, VFIN and JKH.

NDB Securities said high net worth and institutional investor participation was noted in Commercial Bank, Vallibel Finance and John Keells Holdings. Mixed interest was observed in Lanka IOC, Expolanka Holdings and Lanka Tiles whilst retail interest was noted in Browns Investments, LOLC Finance and Nation Lanka Finance.

Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index lost 2.33%. The share price of Lanka IOC decreased by Rs. 1.50 (2.09%) to close at Rs. 70.20.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index decreased by 7.79%. The share price of Expolanka Holdings lost Rs. 15 (7.80%) to close at Rs. 177.25.

Commercial Bank, Browns Investments and Lanka Tiles were also included amongst the top turnover contributors. The share price of Commercial Bank moved down by 30 cents to close at Rs.. 50.

The share price of Browns Investments recorded a loss of 90 cents (10.47%) to close at Rs. 7.70. The share price of Lanka Tiles declined by 50 cents (1.17%) to close at Rs. 42.20.