Lacklustre days continue at Colombo stock market

The Colombo stock market remained lacklustre yesterday on a negative note amidst low investor activity.

The active S&P SL20 declined by 1.68% and the benchmark ASPI by 1.33%. Turnover was Rs. 732.49 million involving 35.10 million shares.

First Capital said the Colombo Bourse failed to recover from seven consecutive sessions of losses as ASPI fell below 11,000 mark to close the day at 10, 946, losing 148 points, caused by panic selling by retailers. 

The Banking sector counters, and blue-chip entities exerted negative pressure on the index as COMB, SAMP, MELS, LOLC and CTC emerged as the top negative contributors to the index. 

It added that the turnover experienced an increase from yesterday by 42.6% and stood at Rs. 732.5 million. 

However, this marked a 9.1% decrease from the monthly average standing at Rs. 805.6 million. Food, Beverage and Tobacco sector led turnover at 38%, followed by the Capital Goods and Diversified Financial sectors jointly contributing to 28% of overall turnover. 

Foreign investors remained net buyers, with a net outflow of Rs. 49.9 million.

NDB Securities said indices closed in red as a result of price losses in counters such as Commercial Bank, Sampath Bank and Melstacorp with the turnover crossing Rs. 732 million. 

High net worth and institutional investor participation was noted in Ceylon Tobacco Company, Melstacorp and Sierra Cables. Mixed interest was observed in Browns Investments, Commercial Bank and John Keells Holdings, whilst retail interest was noted in Industrial Asphalts, LOLC Finance and LVL Energy Fund. 

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

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Ceylon Tobacco Company, Melstacorp and Browns Investments), whilst the sector index lost 1.32%. The share price of Ceylon Tobacco Company decreased by Rs. 25.25 to close at Rs. 1,206.50. The share price of Melstacorp lost Rs. 2.40 to close at Rs. 75.70. The share price of Browns Investments moved down by 10 cents to close at Rs. 5.00.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings), whilst the sector index decreased by 1.12%. The share price of John Keells Holdings declined by Rs. 1.25 to close at Rs. 173.25. The Commercial Bank was also included amongst the top turnover contributors. The share price of Commercial Bank recorded a loss of Rs. 2.70 to close at Rs. 86.60.