Colombo stock market turns bearish

The Colombo stock market turned bearish yesterday, checkmating the recent positive run whilst turnover dipped below Rs. 1 billion mark and foreign selling continued. 

Acuity Stockbrokers said the Bourse ended on a negative note as the ASPI decreased by 0.09% or 4.40 points to close at 5,034.45 points, while the S&P SL20 Index also decreased by 0.34% or 7.52 points to close at 2,173.61.

Turnover decreased by 17.3% relative to Monday to Rs. 0.98 billion while the crossings accounted for

17.8% of the day’s total turnover. 

Foreign investors recorded a net outflow of Rs. 0.19 billion over the day compared to a net outflow of Rs. 0.39 billion on Monday.

First Capital said uncertainty about the expected earnings stemming from report of rating agency falter the winning streak experienced for the past three sessions while witnessing limited retail activities. 

“Selling pressure in selective Banking counters drove the market on a downtrend within the early hours of trading. Subsequently index experienced a short-lived rebound during mid-day prior to closing at 5,034 losing merely 4 points,” First Capital said. 

Parcel trades boosted the turnover by 18% while the Banking sector continued to remain as the dominator. The market experienced moderate foreign participation while continuing to record a net outflow, it added.

NDB Securities said the ASPI edged down as a result of price losses in counters such as Ceylon Tobacco Company, John Keells Holdings and Softlogic Life Insurance. High net worth and institutional investor participation was noted in John Keells Holdings, DFCC Bank and Nations Trust Bank. Mixed interest was observed in Tokyo Cement Company non-voting, Hatton National Bank and Sampath Bank, whilst retail interest was noted in Dialog Axiata, Tokyo Cement Company and Access Engineering. 

Furthermore, foreigners remained active closing as net sellers mainly due to foreign selling in DFCC Bank.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank voting and non-voting, Sampath Bank, DFCC Bank) whilst the sector index lost 0.28%.

The share price of Hatton National Bank lost Rs. 0.40 (0.36%) to close at Rs. 112.20 while the share price of Sampath Bank moved down by Rs. 1.20 (0.99%) to close at Rs. 119.90.

Furthermore, the share price of DFCC Bank closed flat at Rs. 60.00 whilst foreign holdings decreased by 1,401,152 shares. The share price of Hatton National Bank non-voting appreciated by Rs. 0.20 (0.23%) to close at Rs. 86.00.

The materials sector was the second highest contributor to the market turnover whilst the sector index increased by 0.59% John Keells Holdings was also included amongst the top turnover contributors. The share price of John Keells Holdings decreased by Rs. 0.50 (0.44%) to close at Rs. 113.00.