Colombo stock market starts fresh week negatively

The Colombo stock market began a fresh week on a negative note amidst lacklustre investor interest.

The active S&P SL20 Index declined by 1.16% and the benchmark ASPI by 0.7%. Turnover was Rs. 1.65 billion involving 96.35 million shares.

Asia Securities said the indices commenced the week on a low note as front-line stocks EXPO (-3.7%), LIOC (-1.1%), LOLC (-2.7%), HAYL (-1.1%) and SAMP (-2.1%) ended in red due to profit-booking. Turnover was led by EXPO (Rs. 254 million), LIOC (Rs. 148 million), and AAIC (Rs. 144 million). 

Asia said the ASPI opened trading with a gap-down of 134 points at 8,825 due to sharp price declines recorded by heavyweights at market open. With investors resorting to bargain buying, the index pared some of its early losses as the session progressed. 

Furthermore, price gains in LOFC (+3.0%), AAIC (+1.9%), and MELS (+2.7%) supported the ASPI to reverse its intra-day losses. As such, the index closed out the session at 8,890 (-69 points). EXPO (-16 points) came in as the biggest laggard on the ASPI, followed by VONE (-13 points), and SAMP (-8 points). The breadth of the market was negative with 60 price gainers and 115 decliners.

Asia also said foreigners recorded a net inflow of Rs. 96 million. Net foreign buying topped in JKH at Rs. 109.1 million and selling topped in LIOC at Rs. 29.2 million.

First Capital said commencing the week, ASPI regressed to red as panic selling lingered mainly on EXPO following the release of the 3QFY23 results. The index tumbled lower reaching an intraday low of 8,814 as soon as the market opened and gradually rebounded as investor interest reactivated on index heavyweights. Thereafter, market traded on a flat note to close the day at 8,890, losing 69 points. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings and Asia Siyaka Commodities. Mixed interest was observed in Expolanka Holdings, Lanka IOC and Softlogic Life Insurance whilst retail interest was noted in LOLC Finance, Browns Investments and Softlogic Capital.

The Diversified Financials sector was the top contributor to the market turnover (due to Asia Siyaka Commodities) whilst the sector index lost 1.00%. The share price of Asia Siyaka Commodities recorded a gain of 50 cents (12.20%) to close at Rs. 4.60.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.50%. The share price of John Keells Holdings appreciated by 75 cents to close at Rs. 140. Expolanka Holdings, Lanka IOC and Softlogic Life Insurance were also included amongst the top turnover contributors. The share price of Expolanka Holdings decreased by Rs. 7 (3.65%) to close at Rs. 184.75. The share price of Lanka IOC lost Rs. 2.25 to close at Rs. 208.25. The share price of

Softlogic Life Insurance moved up by Rs. 2.25 (1.94%) to close at Rs. 118.50. Separately Melstacorp, Ceylon Tobacco, and Distilleries Company of Sri Lanka announced a cash dividend of Rs. 1.70, Rs. 30, and Rs. 1.10 per share, respectively.