Profit taking drags Colombo bourse down

Wednesday, 8 January 2025 00:08 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday closed negatively as profit taking by investors enjoying recent highs continued.

The benchmark ASPI declined by 0.15% or 24 points and the active S&P SL20 by 0.3%. Turnover was Rs. 4.56 billion involving 676.8 million shares. Nation Lanka Finance saw 500 million of its shares or 6% traded at 40 cents per share (Rs. 201 million) via a crossing. Turnover wise, JKH, Browns Investments and LOLC Holdings occupied the top three positions.

First Capital said investors in the Colombo bourse extended the profit taking sentiment for yet another day, as the ASPI experienced a highly volatile trading session. The ASPI closed the day in the red at 15,855, losing 24 points, despite a partial recovery during midday. A decline in participation from both HNW and retail investors was also observed. HNB, CFIN, HHL, LION and LOLC emerged as the top negative contributors to the index.

The Banking sector led turnover at 22%, followed by Diversified Financials and Food, Beverage & Tobacco sectors jointly contributing 38% of overall turnover. Meanwhile, the net foreign outflow for the day stood at Rs. 48.3 million.

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Hatton National Bank, Central Finance Company and Hemas Holdings.

High net worth and institutional investor participation was noted in Nation Lanka Finance, Amana Bank and John Keells Holdings. Mixed interest was observed in Browns Investments, Sampath Bank and Digital Mobility Solutions Lanka whilst retail interest was noted in Industrial Asphalts, LOLC Finance and Prime Lands Residencies.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank) whilst the sector index edged down by 0.04%. The share price of Sampath Bank closed flat at Rs. 114.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Holdings and Nation Lanka Finance) whilst the sector index decreased by 0.69%. The share price of LOLC Holdings moved down by Rs. 6.50 to Rs. 671.75. The share price of Nation Lanka Finance closed flat at 30 cents.

John Keells Holdings and Browns Investments were also included amongst the top turnover contributors. The share price of John Keells Holdings closed flat at Rs 23.90. The share price of Browns Investments lost 10 cents to Rs. 7.90.