Colombo stock market besieged

The Colombo stock market remained besieged with low turnover and indices tumbling.

Both indices declined by over 1% and turnover was Rs. 900 million involving 32 million shares.

Asia Securities said the indices remained in negative territory due to price losses in the banking counters SAMP (-2.9%), DFCC (-2.4%), NTBN (-2.2%), COMBX (-2.0%), and HNBN (-2.0%). Nevertheless, UBFN (+10.0%), JAT (+3.5%), LOFC (+2.0%), and TKYON (+0.7%) saw renewed buying interest. COMBN (-17 points) ended as the biggest laggard on the ASPI, followed by SAMP (-15 points) and HNBN (-10 points). The breadth of the market was negative, with 37 price gainers and 140 decliners.

Turnover improved on the back of off-board transactions in MELS (Rs. 174 million) which accounted for 19.3% of market turnover.

Foreigners recorded a net outflow of Rs. 5.7 million. Net foreign buying topped in TKYO.N at Rs. 10.6 million and selling topped in CALT.N at Rs. 7.5 million.

First Capital said the Colombo bourse displayed a downward trajectory as the market came down for the 3rd consecutive session closing at 11,249 losing 115 points influenced by the uncertainty regarding the ongoing IMF review meeting focusing on obtaining the second tranche. 

The Banking sector shares alongside blue-chip companies showcased a significant decline on the index as they topped the negative contributor's list resulting in the investors adapting to a streak of profit booking as selling pressure mounted on the above-stated counters which later extended on MELS and JKH as the day progressed.

On the flip side, the Consumer Durables sector experienced improved interest during the day as the investors displayed active buying interest in MGT. 

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp, John Keells Holdings, and Hemas Holdings. Mixed interest was observed in Hatton National Bank, Sampath Bank and Pan Asia Banking Corporation whilst retail interest was noted in SMB Leasing, Browns Investments and LOLC Finance. 

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Melstacorp) whilst the sector index lost 0.44%. The share price of Melstacorp closed flat at Rs. 86.90.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank and Sampath Bank) whilst the sector index decreased by 2.36%. The share price of Hatton National Bank recorded a loss of Rs. 3.50 to Rs 170. The share price of Sampath Bank declined by Rs. 2 to Rs. 67.80.

Hemas Holdings and John Keells Holdings were also included among the top turnover contributors. The share price of Hemas Holdings lost 80 cents to Rs. 80. The share price of John Keells Holdings moved down by Rs. 2.25 to Rs 187.