Downward trend at Colombo stock market persists

The Colombo stock market continued its downward trend yesterday amidst low investor activity. The active S&P SL20 declined by 1.26% and the benchmark ASPI by 0.95%. Turnover was Rs. 513.63 million involving 30.1 million shares.

First Capital said the broad market experienced day of negative sentiment and uncertainty as the banking sector counters and blue chips dragged the market down. 

The most significant contributors towards the negative index were JKH, MELS, CFIN, COMB and LOLC, reflecting increased negative contributions from banks and blue-chip firms. The market’s negative trajectory can be attributed to political uncertainty, and panic selling causing diminished sentiment amongst retailers. 

Turnover saw a decline, standing at Rs. 513.6 million marking a 7.3% decrease from the previous day, where the Banking sector led turnover at 21.6%, followed by the Food, Beverage and Tobacco and Capital Goods sectors jointly contributing to 35.9% of overall turnover. 

Foreign investors turned net buyers, with a net inflow of Rs. 41.9 million signalling interest in local investments.

NDB Securities said ASPI closed in red as a result of price losses in counters such as Melstacorp, John Keells Holdings and Central Finance Company with the turnover crossing Rs. 513 million. A similar behaviour was witnessed in the S&P SL20. 

High net worth and institutional investor participation was noted in Commercial Bank. Mixed interest was observed in John Keells Holdings, Ceylon Cold Stores and Nations Trust Bank whilst retail interest was noted in Browns Investments, SMB Leasing non-voting and Vallibel Power Erathna. 

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

The Banking sector was the top contributor to the market turnover (due to Commercial Bank, Nations Trust Bank and Pan Asia Banking Corporation) whilst the sector index lost 1.03%.The share price of Commercial Bank moved down by Rs. 0.80 to close at Rs. 89.30. The share price of Nations Trust

Bank recorded a loss of Rs. 2.50 to close at Rs. 114.50. The share price of Pan Asia Banking Corporation declined by 20 cents to close at Rs. 19.00.

The food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Ceylon Cold Stores) whilst the sector index decreased by 0.84%. The share price of Ceylon Cold Stores lost Rs. 1.10 to close at Rs. 52.50. John Keells Holdings was also included amongst the top turnover contributors. The share price of John Keells Holdings declined by Rs. 3.00 to close at Rs. 174.50.