Stock market remains bearish

The Colombo stock market remained bearish yesterday amid uncertainties surrounding a delay in obtaining the second tranche of the International Monetary Fund. 

Benchmark ASPI down by 66.35 points or 0.59% and the S&P SL20 dipped by 18.38 points or 0.58%. Turnover was Rs. 1.19 billion involving 62.44 million shares. 

First Capital said market showcased a downward yet volatile trend during the morning session and continued to stumble down to halt in the red zone closing at 11,208 losing 66 points, on the back of the assumptions and uncertainties regarding a delay in obtaining the second tranche of IMF support due to the country not being able to achieve the total required commitments by the board. 

Moreover, index heavy weights and Banking sector shares experienced a decline in prices influenced by the bearish market sentiment as the investor participation was considerably low. On the flip side, retail shares and utilities sector shares had improved interest during the day as they backed the index on a positive tone pushing the index higher despite the negative momentum. 

Furthermore, investors chose to book profits on primary dealer counters during the day resulted by the hike in the 06M bill which shot up by 19bps to settle at 15.38% speculating a possible upward revision on yields. 

Meanwhile the turnover was recorded at Rs. 1.2 billion, 37% lower than the monthly average of Rs. 1.9 billion contributed by the Capital Goods sector and Utilities sector for a joint contribution of 38%. 

NDB Securities said high net worth and institutional investor participation was noted in Windforce, John Keells Holdings, and RIL Property. Mixed interest was observed in CIC Holdings, Lanka IOC and Capital Alliance whilst retail interest was noted in SMB Leasing, Softlogic Capital and Browns Investments. 

Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers. Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 0.22%. The share price of John Keells Holdings gained Rs. 2.00 (1.08%) to close at Rs. 188.00. 

Utilities sector was the second highest contributor to the market turnover (due to Windforce) whilst the sector index decreased by 0.90%. The share price of Windforce Ltd. decreased by Rs. 0.30 (1.57%) to close at Rs. 18.80. R I L Property, CIC Holdings and Lanka IOC were also included amongst the top turnover contributors. 

The share price of R I L Property closed flat at Rs. 6.20. Also, the share price of CIC Holdings closed flat at Rs. 75.10. The share price of Lanka IOC declined by Rs. 1.25 (1.08%) to close at Rs. 115.00.