The Colombo stock market remained bearish with minimal activity yesterday ahead of the 2023 Budget.

Both indices declined whilst turnover was Rs. 941 million involving 43.5 million shares. 

Asia Securities said following a positive start to the session, the indices edged down as selling pressure in heavyweights EXPO, LOLC and SAMP returned in the second half of trading. Activity momentum remained muted with turnover continuing below Rs. 1 billion. 

It said the ASPI commenced the session with a gap-up of 38 points and hovered around the 8,460 mark before dropping down to 8,363 (-56 points). EXPO (-3.4%), LOLC (-3.6%), SAMP (-1.2%), RICH (-2.3%), SUN (-4.8%) and BIL (-1.7%) recorded price losses during the session while LIOC (+2.2%), SLTL (+7.0%), JKH (+0.7%), and LHCL (+6.0%) ended in green. Turnover was led by EXPO (Rs. 143 million), LIOC (Rs. 141 million), JKH (Rs. 64 million), and SLTL (Rs. 63 million). The breadth of the market was negative with 71 price gainers and 115 decliners.

Foreigners recorded a net outflow of Rs. 23.5 million net buying seen most in LIOC at Rs. 18.6 million and selling in JKH at Rs. 35.9 million.

First Capital said after three consecutive days in green, ASPI closed the day in red as retailers. chose to remain side-lined awaiting direction from the Budget 2023.  It said the index opened on an upbeat note but regressed to red after mid-day as selling pressure took charge and closed the day lower at 8,363, losing 56 points. 

Investor sentiment picked up on LIOC following an upward price revision of Auto Diesel by Rs. 15 to Rs. 430. However, a double blow (Dip in global freight rates to $ 3,185 FEUs and an increase in the tax rate to 30%) on EXPO dragged down the index further.

NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank, John Keells Holdings and Nestle Lanka. Mixed interest was observed in Expolanka Holdings, Lanka IOC and Sri Lanka Telecom whilst retail interest was noted in Browns Investments, LOLC Finance and Industrial Asphalts.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover whilst the sector index lost 0.65%. The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.40%. The share price of John Keells Holdings moved up by One Rupee to close at Rs. 139.75.

Expolanka Holdings, Lanka IOC, Sri Lanka Telecom and Sampath Bank were also included amongst the top turnover contributors. The share price of Expolanka Holdings decreased by Rs. 5.25 (3.43%) to close at Rs. 148. The share price of Lanka IOC gained Rs. 4 (2.23%) to close at Rs. 183.50. The share price of Sri Lanka Telecom recorded a gain of Rs. 4.20 (7.04%) to close at Rs. 63.90. The share price of Sampath Bank declined by 40 cents (1.23%) to close at Rs. 32.20.

Separately Ceylon Tobacco Company announced a third interim cash dividend of Rs. 9 per share.

Inactivity continues in the bond market