Colombo stock market remains bearish; block trades on Windforce dominate trading

The Colombo stock market remained bearish yesterday amidst moderate activity as investors appeared to maintain a wait and see attitude awaiting President Ranil Wickremesinghe’s address to the nation later in the night.

The ASPI was down by 12 points and S&P SL20 was flat. Turnover was Rs. 1.8 billion involving 75.2 million shares.

Asia Securities said the indices closed in red dragged by price losses in DIPD (-1.6%), LMF (-1.3%), MGT (-1.7%), LIOC (-1.0%), DIST (-1.5%), and LOLC (-1.2%). CFIN (+1.3%), LALU (+2.4%), BALA (+2.3%), HASU (+1.7%), and UAL (+1.9%) ended in green in an otherwise subdued session. The breadth of the market remained negative with 68 price gainers and 81 decliners.

Turnover remained moderate due to low investor participation in anticipation of the announcement on Sri Lanka’s debt restructuring agreement with the Official Creditor Committee. Block trades in WIND contributed Rs. 439 million to market turnover, while block trades in CFIN added 

Rs. 220 million.

Foreigners recorded a net inflow of Rs. 52 million. Net foreign buying topped in JKH at 

Rs. 44.5 million and selling topped in COMB.X at Rs. 15.5 million.

First Capital said the Colombo bourse witnessed a bearish sentiment, reversing positive sentiment seen during the previous trading session as investors opted to stay on the side-lines awaiting President Ranil Wickramasinghe’s address to the nation.

ASPI remained volatile and failed to keep up its positive momentum as the index fell by 12 points (-0.1%) to close the day at 12,261, led by thin activity on index heavyweights. However, several conglomerates and tourism sector counters gained momentum as SL looks to allow Visa free entry for travellers from 67 countries.

Off-board transactions contributed 43.3% to the overall turnover and amongst them, a notable transaction was recorded on WIND through four off-board transactions totalling to 22.5 million shares traded at Rs. 19.5, amounting to a stake of 1.7%. The Utilities sector led turnover with a contribution of 26%, followed by the Capital Goods and Diversified Financials sectors jointly contributing to 37% of overall turnover.

NDB Securities said mixed interest was observed in John Keells Holdings, Marawila Resorts and Hemas Holdings whilst retail interest was noted in Beruwala Resorts, LVL Energy Fund and Browns Investments.

The Utilities sector was the top contributor to the market turnover (Windforce Ltd.) whilst the sector index gained 0.26%. The share price of Windforce closed flat at Rs. 19.50.

The Capital Goods sector was the second highest contributor to the market turnover (Hayleys and John Keells Holdings) whilst the sector index edged up by 0.02%. The share price of Hayleys moved up by 50 cents to Rs. 106.50. The share price of John Keells Holdings closed flat at Rs. 206.

Central Finance Company and Hatton National Bank were also included amongst the top turnover contributors. The share price of Central Finance Company gained Rs. 1.50 to Rs. 120. The share price of Hatton National Bank declined by one Rupee to Rs. 205.