Colombo stock market remains bearish

The Colombo stock market remained bearish amidst thin volume as investor interests were lacklustre.

The active S&P SL20 was down by 0.6% and the benchmark ASPI by 0.3%. Turnover was Rs. 554.4 million involving a low 20 million shares. 

Asia Securities said the indices remained in red territory owing to price losses in LIOC (-0.9%), LOFC (-2.0%), ACL (-2.1%), BIL (-1.9%), and LOLC (-0.7%). CALT (+3.1%), FCT (+2.0%), LLUB (+1.3%), CCS (+2.4%), DIST (+1.1%) closed with gains in an otherwise subdued session.  The breadth of the market was negative with 65 price gainers and 94 decliners. Turnover was led by SAMP (Rs. 109 million) boosted by off-board transactions which totalled Rs. 107 million Foreigners recorded a net outflow of Rs. 29.2 million. Net foreign buying topped in CALT at Rs. 2.6 million and selling topped in LION at Rs. 21 million.

First Capital said the bourse closed in red during the trading session at 8,722 (down 24 points) due to extended profit taking for the second consecutive day on Banking sector and Blue-chip companies. Among the actively traded shares, treasury shares had increased investor involvement as they expected the T-Bill rates to go down at the Bill auction held today. 

Furthermore, high net worth investor activity was visible on SAMP and LION through off-board transactions, which pushed up the turnover compared to Tuesday.  NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank and Lion Brewery. Mixed interest was observed in Expolanka Holdings, Capital Alliance and Hayleys whilst retail interest was noted in LOLC Finance, Industrial Asphalts and Browns Investments.  The Banking sector was the top contributor to the market turnover (due to Sampath Bank) whilst the sector index lost 0.62%. The share price of Sampath Bank decreased by 60 cents to Rs. 49.20. The Diversified Financials sector was the second highest contributor to the market turnover (due to Capital Alliance and First Capital Holdings) whilst the sector index decreased by 0.39%. The share price of Capital Alliance moved up by one rupee to Rs. 33.50. The share price of First Capital Holdings appreciated by 20 cents to Rs. 34.40. Expolanka Holdings and Hayleys were also included among the top turnover contributors. The share price of Expolanka Holdings lost Rs. 1.25 to Rs. 130.50. The share price of Hayleys recorded a gain of 20 cents to Rs. 69.40.