Colombo stock market begins new week with losses

The Colombo stock market suffered a fresh setback yesterday with indices dipping sharply though turnover remained healthy.

The active S&P SL20 declined by 1.77% extending its YTD negative return to close to 4%. The benchmark ASPI fell 1% and survived a positive YTD return by a fraction. 0.08 points.

Turnover yesterday was Rs. 1 23 billion involving 32.8 million shares. The silver lining was net foreign inflow.

First Capital said the broad market commenced the week by shattering investor expectations, as the prevailing political uncertainties in the country continued to cloud sentiment. S&P SL20 hovered below the 3,000 level and ASPI closed the session at 10,663 losing 113 points.

The Banking sector counters, and blue-chip entities exerted negative pressure on the index where COMB, HNB, CTC, SAMP and RCL emerged as the top negative contributors to the index. 

Amidst the mixed participation, turnover marked a 62.3% increase from the monthly average. The Food, Beverage and Tobacco sector contributed 46% to the overall turnover whilst the Banking and Capital Goods sectors jointly contributed 44% to the total turnover. Foreign investors turned net buyers, recording an inflow of Rs. 44.8 million.

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Commercial Bank, Hatton National Bank and Ceylon Tobacco Company.

High net worth and institutional investor participation was noted in Ceylon Tobacco Company, Richard Pieris & Company and Hatton National Bank. Mixed interest was observed in John Keells Holdings, Royal Ceramics and Commercial Bank whilst retail interest was noted in SMB Leasing, Dialog Axiata and Browns Investments.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Ceylon Tobacco Company) whilst the sector index lost 0.68%. The share price of Ceylon Tobacco Company decreased by Rs. 40.25 to Rs. 1,177.75.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank) whilst the sector index decreased by 1.91%. The share price of Hatton National Bank lost Rs. 4.25 to Rs. 159.

Richard Pieris & Company, John Keells Holdings and Royal Ceramics were also included amongst the top turnover contributors. The share price of Richard Pieris & Company closed flat at Rs. 20.50. The share price of John Keells Holdings recorded a loss of Rs. 1.50 to Rs. 164. The share price of Royal Ceramics declined by Rs 1.40 to Rs. 28.50.