Tuesday Nov 26, 2024
Tuesday Nov 26, 2024
Friday, 14 June 2024 00:02 - - {{hitsCtrl.values.hits}}
The Colombo stock market yesterday closed negatively, failing to live up to the Government’s tone of success and optimism over the latest vote of confidence by the IMF.
The active S&P SL20 declined by 16 points or 0.4% and the benchmark ASPI by 31 points or 0.2%. Turnover was Rs. 1.8 billion involving 57.3 million shares. Foreigners were also net sellers.
Asia Securities said the indices closed in red dragged by HAYL (-1.9%), SAMP (-1.0%), NDB (-2.1%), PABC (-1.7%), COCR (-1.3%), and BIL (-1.6%). However, SCAP (+5.6%), and AAIC (+4.8%) saw renewed interest from investors after the announcement of a share buyback.
SAMP (-6 points), NDB (-6 points), and HAYL (-6 points) came in as the biggest laggards on the ASPI.
Turnover was led by COMBN (Rs. 477 million) due to off-board transactions (Rs. 391 million), followed by SCAP (Rs. 129 million) and HAYL (Rs. 102 million).
Asia also said foreigners recorded a net outflow of Rs. 82.9 million. Net foreign buying topped in LFIN at Rs. 19.2 million and selling topped in COMB.N at Rs. 90.7 million.
First Capital said the bourse continued its course in a negative direction amidst another day of low sentiment. The ASPI closed at 12,360, marking a 0.25% decrease from the previous day to which banks and conglomerates contributed the most, significantly towards the negative index, led by SAMP, NDB, HAYL, BIL, and LOLC. Conversely, MELS, SEMB, SPEN, RICH, and DIAL were the most significant positive contributors towards ASPI.
Increased negative activity and uncertainty within the market can be attributed to anticipation regarding the confirmation of debt restructuring from private creditors following the IMF 2nd review.
An increased number of crossings took place primarily amongst banks and conglomerates.
Turnover saw an increase where the Banking sector led turnover at 40%, followed by the Insurance, and Capital Goods sectors jointly contributing to 26% of total further exhibiting volatility within the market as a result of increased bargain buying activity particularly amongst banks, HNWIs, and insurance firms. The market overall experienced a day of diminished sentiment primarily amongst banks.
NDB Securities said high net worth and institutional investor participation were noted in Commercial Bank, Hatton National Bank and John Keells Holdings. Mixed interest was observed in Softlogic Capital, Hayleys and Softlogic Life Insurance whilst retail interest was noted in Dialog Axiata, Browns Investments and Alumex.
The Banking sector was the top contributor to the market turnover (Commercial Bank) whilst the sector index lost 0.55%. The share price of Commercial Bank closed flat at Rs. 109.25.
The insurance sector was the second highest contributor to the market turnover (Softlogic Life Insurance) whilst the sector index increased by 1.00%. The share price of Softlogic Life Insurance appreciated by Rs. 3.20 to Rs. 69.40.
Softlogic Capital, Hayleys and Sunshine Holdings were also included among the top turnover contributors. The share price of Softlogic Capital gained 40 cents to Rs. 7.50. The share price of Hayleys moved down by Rs. 2 to Rs. 106. The share price of Sunshine Holdings recorded a gain of 20 cents to Rs. 65.
Separately Distilleries announced its interim dividend of 70 cents per share.
