Colombo stock market reverts to negative territory

The Colombo stock market reverted to negative territory yesterday though investor activity improved moderately. 

Both indices declined by 1.2%. Turnover was Rs. 1.3 billion involving 37.6 million shares. Crossings accounted for nearly 50% of the turnover. The market also saw net foreign inflow of over Rs. 100 million. 

Asia Securities said the indices fell after three straight sessions of gains, mainly due to price declines in banking stocks and primary dealers. FCT (-8.1%), CFVF (-6.3%), CALT (-3.6%), SAMP (-2.8%), COMBN (-2.2%), DFCC (-1.9%) and HNBN (-1.2%) closed in red, while JKH (+0.4%), PARQ (+0.6%) and HHL (+0.1) experienced marginal price increases. Overall, 35 stocks recorded gains, while 130 closed with losses.

Turnover was led by SAMP (Rs. 529 m), JKH (Rs. 198 m), and PLC (Rs. 90 m). Off-board transactions accounted for 46.6% of the turnover, with 4 crossings from SAMP (Rs. 492.3 m) and 1 crossing each from PLC (Rs. 88.7 m), HAYL (Rs. 27.4 m) and JKH (Rs. 20.1 m). 

Foreigners recorded a net inflow of Rs. 122.4 m. Net foreign buying topped in JKH at Rs. 149.5 m and selling topped in CINS.X at Rs. 26.9 m.

First Capital said the Bourse recorded a reversal as ASPI closed the day in the red zone, breaking the three-day winning spree, following the uncertainties surrounding the budget and the announcement of a new mechanism for revising electricity tariffs every quarter, in contrast to the existing system of biannual revisions, which overshadowed the positive outcome of the successful conclusion of the IMF 1st review meeting. 

The index experienced a steep drawdown to 10,731, losing 131 points amidst the inflated selling pressure on the Banking sector, driven by concerns on the potential capital gain tax on the Government Securities in the upcoming budget. 

As negative sentiment prevailed in the market amidst lingering macroeconomic uncertainties, investor interests continued to escalate on Defensive shares. 

NDB Securities said mixed interest was observed in First Capital Holdings and Sri Lanka Telecom whilst retail interest was noted in Browns Investments, First Capital Treasuries and LOLC Finance. 

The Banking sector was the top contributor to the market turnover (due to Sampath Bank) whilst the sector index lost 2.09%. The share price of Sampath Bank decreased by Rs. 1.90 to Rs. 65.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.44%. The share price of John Keells Holdings gained 75 cents to Rs. 192.

People’s Leasing & Finance, First Capital Holdings and Sri Lanka Telecom were also included amongst the top turnover contributors. The share price of People’s Leasing & Finance moved down by 50 cents to Rs. 10.20. The share price of First Capital Holdings recorded a loss of Rs. 3.20 to Rs. 47.20. The share price of Sri Lanka Telecom declined by one Rupee to close at Rs. 101.