Colombo stock market takes breather

After 11 days of bullish sentiments, the Colombo stock market yesterday took a breather as investors took profit forcing indices to dip.

The benchmark ASPI declined by over 58 points or 0.5% and the active S&P SL20 by 0.3%. Turnover was Rs. 2.3 billion involving 73.2 million shares.

First Capital said the broad market failed to sustain the 11 consecutive sessions of gains as selling pressure and profit taking emerged across the majority of the sectors. The ASPI opened the day at a negative note but rebounded instantly, reaching an intraday high of 12,035. 

However, after the first hour of trading, selling pressure and profit taking emerged, causing the index to decline by over 100 points. Despite this downturn, the index recovered gradually and closed the session in red at 11,934, down just 59 points.

JKH, LOLC, NDB, HAYL and DFCC exerted a negative pressure on the index. Notably, the Banking sector experienced mixed sentiment throughout the day.

There was mixed participation from retail and HNW investors. Additionally, 75% of the four off-board transactions took place in banks, namely in SAMP, COMB, and NTB. The Banking sector solely contributed 59% to the overall turnover whilst the Capital Goods and Food, Beverage & Tobacco sectors jointly contributed 18% to the total turnover.

NDB Securities said high net worth and institutional investor participation was noted in Commercial Bank, Sampath Bank and Hayleys. Mixed interest was observed in Hatton National Bank, Nations Trust Bank and Vallibel One whilst retail interest was noted in LVL Energy Fund, Browns Investments and Hela Apparel Holdings Ltd.

Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank, Commercial Bank, Hatton National Bank and Nations Trust Bank) whilst the sector index gained 0.43%. The share price of Sampath Bank increased by Rs. 1.30 to Rs. 79.80. The share price of Commercial Bank gained Rs. 1.50 to Rs. 104.75. The share price of Hatton National Bank moved up by 50 cents to Rs. 214.75. The share price of Nations Trust Bank recorded a loss of 25 cents to Rs. 128.75.

The Capital Goods sector was the second highest contributor to the market turnover (due to Vallibel One) whilst the sector index decreased by 1.22%. The share price of Vallibel One declined by 40 cents to Rs. 52.60