Fuel hike dampens local investor sentiment at CSE

The Colombo stock market turned negative again as sharp increase in fuel prices dampened investor sentiment. 

The two indices the active S&P SL20 and benchmark ASPI lost 1% each. Turnover was Rs. 2.3 billion involving 308 million shares. 

Asia Securities said following two sessions of gains, the indices closed lower on Tuesday while retail and HNI activity remained steady.

EXPO topped the top turnover list at Rs. 479 million, followed by BIL (Rs. 451 million), and LIOC (Rs. 361 million). Front-line stocks EXPO (-2.8%), LOLC (-1.5%), LOFC (-2.0%), BIL (-1.1), and VONE (-2.7%) ended mildly lower while LIOC continued its recent upward trend, underpinned by the increase in fuel prices. 

Asia also foreigners’ activity remained subdued, however a net inflow of Rs. 21.7 million was recorded, supported by net buying in MELS (Rs. 10.5 million), HAYL (Rs. 9.2 million), and EXPO (Rs. 5.9 million). Overall, 47 stocks ended in green while 133 recorded losses during the session.

First Capital said after two consecutive days in green, ASPI closed the day in red, down marginally after midnight fuel hike prompted by the introduction of fuel pricing formula, raised fuel prices past Rs. 400/litre for the first time. 

“Further, concerns regarding the announced price hikes by other transport sector entities together with incremental costs on prices of other essential products, and thus on inflation also contributed towards the negative sentiment prevailing in the market,” First Capital added. 

It said ASPI opened the day higher and moved up during the first few minutes into trading, however lost steam afterwards on the back of profit-taking in selected counters. Turnover was led by Food, Beverage & Tobacco and Transportation sectors accounting for a joint contribution of 48%. 

NDB Securities said indices closed in red as a result of price losses in counters such as Expolanka Holdings, Melstacorp and LOLC Holdings.

It said high net worth and institutional investor participation was noted in National Lanka Finance and Ceylon Tobacco Company. Mixed interest was observed in Expolanka Holdings, Lanka IOC and LOLC Holdings whilst retail interest was noted in SMB Leasing, Browns Investments and LOLC Finance. 

Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Browns Investments) whilst the sector index lost 0.92%. The share price of Browns Investments lost 10 cents to close at Rs. 9.40.

Transportation sector was the second-highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index decreased by 2.82%. The share price of Expolanka Holdings decreased by Rs 6.75 (2.82%) to close at Rs. 232.75.

Lanka IOC, LOLC Finance and Nation Lanka Finance were also included among the top turnover contributors. The share price of Lanka IOC moved up by Rs 6.20 (12.02%) to close at Rs. 57.80. The share price of LOLC Finance recorded a loss of 20 cents to close at Rs. 10. 

The share price of Nation Lanka Finance closed flat at 70 cents. 

Separately CIC Holdings, Samson International and Central Finance Company announced their final dividends of one Rupee, Rs. 2 and Rs. 2 per share respectively.