Colombo stock market remains bearish

The Colombo stock market remained bearish for the second consecutive day yesterday amidst profit taking and waning investor interest.

The benchmark ASPI declined by 4 points and the active S&P SL20 by 26 points or 0.7%. Turnover was Rs. 1.3 billion involving 59.3 million shares.

First Capital said the bourse experienced another day of profit taking, as the ASPI fell to 11,930, losing 4 points and marking a 0.04% decline from the previous day. The most significant contributors towards the negative index were HNB, SAMP, COMB, HAYL, and JKH, reflecting low participation from HNW investors. Additionally, CINS was responsible for positive contributions towards the index. Selling sentiment dominated the market, where banks predominantly experienced increased selling pressure. The inaugural day of trading for PickMe (PKME), with shares rising by 8.3% was recorded yesterday.

Turnover saw a decline, marking a 41.8% decrease from the previous day, where the Banking sector led turnover by 26.8%, followed by the Diversified Financials, and Capital Goods sectors jointly contributing to 34.9% of overall turnover over. There was a net foreign outflow of Rs. 18 million signalling interest in external investments. NDB Securities said high net worth and institutional investor participation was noted in Commercial Credit & Finance, Central Finance Company and Hatton National Bank. Mixed interest was observed in Sampath Bank, Lankem Developments and Digital Mobility Solutions Lanka whilst retail interest was noted in Asia Siyaka Commodities, Browns Investments and Hela Apparel Holdings.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank and Commercial Bank) whilst the sector index lost 0.83%. The share price of Sampath Bank decreased by 80 cents to Rs. 79. The share price of Commercial Bank declined by 75 cents to Rs. 104.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Commercial Credit and Finance) whilst the sector index increased by 0.47%. The share price of Commercial Credit and Finance moved up by one Rupee to Rs. 36.30.

Lankem Developments and Digital Mobility Solutions Lanka were also included amongst the top turnover contributors. The share price of Lankem Developments gained 70 cents to Rs. 17.60. The share price of Digital Mobility Solutions Lanka recorded a gain of Rs. 3 to Rs. 39.