More setbacks for stock market; PM’s speech fails to boost investor sentiment

The Colombo stock market suffered further setbacks yesterday with indices and turnover down as Prime Minister Ranil Wickremesinghe’s crisis resolution statement failed to boost investor sentiment.

The active S&P SL20 Index was down by 2.2% and the benchmark ASPI was lower by 1.6%. Turnover was Rs. 916 million, lower from Rs. 1 billion plus in recent sessions.

First Capital said the index faltered over “PM’s speech on economic conditions.”

It said the Bourse displayed a downtrend and closed the day down at 1.6% in response to the PM’s speech on the current economic situation and the future outlook.

“As a result of the rising fears among investors over economic breakdown, index plunged deeply into the red zone and traded in the red till the end while closing the day at 7,239, losing 121 points,” First Capital opined.

Moreover, in addition to EXPO, LIOC also contributed to the ASPI dip as investors booked profits in LIOC after the company announced a dividend of Rs. 2.25. It said turnover, which dropped by 11% compared to the weekly average, was led by the Energy and Food, Beverage and Tobacco sectors accounting for a joint contribution of 52%.

Asia Securities said the indices extended heavy losses for the second consecutive session due to price declines LIOC (-5.7%), EXPO (-5.4%), LOLC (-2.4%), BIL (-4.2%), LOFC (-6.1%), SAMP (-3.7%), VONE (-5.3%), and HAYL (-2.7%).

It said turnover was led by LIOC (Rs. 330 million), EXPO (Rs. 121 million), and LOLC (Rs. 55 million). The breadth of the market ended weak with 39 price gains and 138 decliners.

Asia also said foreigners recorded a net inflow of Rs. 20.6 million while their participation increased to 3.3% of turnover (previous day 1.8%). Net foreign buying topped in HNB.N at Rs. 29.9 million and selling topped in HAYC at Rs. 7.3 million.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank. Mixed interest was observed in Lanka IOC, Expolanka Holdings and LOLC Holdings, whilst retail interest was noted in SMB Leasing nonvoting, Browns Investments and LOLC Finance.

Energy sector was the top contributor to the market turnover (due to Lanka IOC), whilst the sector index lost 4.87%. The share price of Lanka IOC decreased by Rs. 4.90 (5.72%) to close at Rs. 80.70.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments), whilst the sector index decreased by 1.28%.

The share price of Browns Investments recorded a loss of 30 cents (4.23%) to close at Rs. 6.80.

Expolanka Holdings, LOLC Holdings and Hatton National Bank were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 9.25 (5.39%) to close at Rs. 162.25. The share price of LOLC Holdings moved down by Rs. 9.25 (2.35%) to close at Rs. 384.00. The share price of Hatton National Bank closed flat at Rs. 79.80.

Separately Lanka IOC announced a first and final dividend of Rs. 2.25 per share.