Profit-taking drags market down amidst Rs. 4 b turnover and net foreign outflow

The Colombo stock market began a fresh week on a negative note though investor activity was healthy influenced by profit-taking.

The active S&P SL20 declined by 3.2% and the benchmark ASPI by 1.76%. Turnover was Rs. 4 billion involving 137 million shares.

Asia Securities said the indices commenced the week in red dragged by price losses in banking sector counters COMB (-5.7%), NDB (-4.8%), HNBN (-4.8%), UBCN (-4.5%), SEYBN (-3.2%), SEYBX (-2.9%), SAMPN (-3.9%) while JKH (-5.5%) saw heavy foreign selling during the session. The ASPI touched an intra-day low of 11,300 (-296 points) in mid-day trading however, saw a brief recovery in the second half of the session to close at 11,392 (-204 points). COMB (-45 points), JKH (-33 points), HNB (-28 points) and SAMP (-26 points) ended as the biggest laggards on the ASPI. 

Overall, 66 stocks ended in green while 136 ended with losses.

Turnover was led by JKH (Rs. 1.3 b billion), NTB (Rs. 215 million), and LLUB (Rs. 153 million). A net foreign outflow of Rs. 947 million was recorded for the day led by JKH (Rs. 755 million). 

First Capital said profit booking extended to the second continuous session in the market while foreign selling further tapered down the index.

The Index set off on a steep downtrend as the market opened with selling pressure taking charge predominantly on blue chips (mainly JKH) including Banking counters. Following the quarter results outcome and continuous appreciation in price in the last few weeks, COMB, HNB and SAMP crashed sharply amidst selling pressure and dragged the index to red. However, by mid-session index displayed gradual recovery yet failed to recoup losses and closed for the day at 11,392 losing 204 points.

Moreover, foreign investors turned net sellers during the day amidst active selling observed on JKH which alone recorded an outflow of Rs. 754.8 million. Turnover remained healthy recording 12.1% above the monthly average of Rs. 3.6 billion with a sole contribution of 40% from the Capital Goods sector while the Banking sector contributed 21% to overall turnover.

NDB Securities said high net worth and institutional investor participation were noted in John Keells Holdings, Expolanka Holdings, and Melstacorp. Mixed interest was observed in Nations Trust Bank, Chevron Lubricants and Hayleys whilst retail interest was noted in UB Finance Company, Browns Investments and Industrial Asphalts.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index lost 3.50%. The share price of John Keells Holdings decreased by Rs. 10.50 to Rs. 180.50. The share price of Hayleys recorded a loss of 90 cents to Rs. 89.70.

The Banking sector was the second highest contributor to the market turnover (due to Nations Trust Bank and Sampath Bank) whilst the sector index decreased by 3.85%. The share price of Nations Trust Bank gained Rs. 5.25 (4.69%) to Rs. 117.25. The share price of Sampath Bank declined by Rs. 3 (3.87%) to close at Rs. 74.60. Chevron Lubricants was also included among the top turnover contributors. The share price of Chevron Lubricants moved up by Rs. 1.80 to Rs. 91.80.