Colombo stock market remains negative despite IMF boost

• Up for majority stake sale entities SLT and Lanka Hospitals continue their upward movement
• SLT up Rs. 17.20/18% to Rs. 112.50; Lanka Hospitals up Rs. 13.25/114% to Rs. 133.25

The Colombo stock market remained negative for the second consecutive day despite positives emanating from the receipt of the IMF Executive Board approval of $ 2.9 billion Extended Fund Facility program.

The active S&P SL20 declined by over 1% and the benchmark ASPI dipped by 0.8%. Turnover was Rs. 1.5 billion involving 70 million shares. 

Asia Securities said the indices closed in red for a second consecutive session on Wednesday as investors extended profit-taking while turnover remained at moderate levels. LIOC (-4.9%), LOFC (-1.5%), LOLC (-0.5%), COMB (-1.7%), and SAMP (-2.4%) closed lower while SLTL (+18.0%), and LHCL (+11.0%) scaled sharp price increases for a second session. 

SLTL (+13 points) contributed the most to the ASPI, followed by LHCL (+5 points) while SAMP (-12 points), LIOC (-11 points), and VONE (-9 points) ended as the biggest laggards on the index. Overall, 51 stocks ended in green while 126 settled with losses.

Turnover was led by SLTL (Rs. 428 million), LIOC (Rs. 116million), and EXPO (Rs. 99 million). 

Asia said foreigners recorded a net inflow of Rs. 35.5million. Net foreign buying topped in TKYO.X at Rs. 24.5 million and selling topped in LIOC at Rs. 4.3 million.

First Capital said the Index remained volatile and continued its downward trend since the previous session and closed the day at 9,527 losing 77 points. Investors remained on the side-lines and resorted to book profits amidst thin trading volumes in the market. 

LIOC was amongst the top contributors to the negative sentiment following the press release from the minister of a possible downward adjustment in fuel prices owing to a decline in global fuel prices. The banking counter showcased negative sentiment in the market due to restructuring concerns and treasury counters displayed active investor participation following the readjustment of bond and bill yield. SLTL, LHCL and ECL remained the top gainers for the day as the treasury decided to divest major stakes of those counters. 

NDB Securities said high net worth and institutional investor participation was noted in First Capital Holdings. Mixed interest was observed in Sri Lanka Telecom, Lanka IOC and Expolanka Holdings whilst retail interest was noted in SMB Leasing nonvoting, Browns Investments and LOLC Finance

The Telecommunication Services sector was the top contributor to the market turnover (due to Sri Lanka Telecom) whilst the sector index gained 6.94%. The share price of Sri Lanka Telecom increased by Rs. 17.20 (18.05%) to Rs. 112.50.

Diversified Financials sector was the second highest contributor to the market turnover (due to First Capital Holdings) whilst the sector index decreased by 0.48%. The share price of First Capital Holdings recorded a loss of 60 cents to Rs. 31.60.

Lanka IOC, Expolanka Holdings and The Lanka Hospitals Corporation were also included amongst the top turnover contributors. The share price of Lanka IOC lost Rs. 9 (4.87%) to Rs. 175.75. The share price of Expolanka Holdings moved up by Rs. 2 to close at Rs. 138.

The share price of The Lanka Hospitals Corporation appreciated by Rs. 13.25 (11.04%) to Rs. 133.25.