Stock market reverts to negative mindset

The Colombo stock market reverted to negative mode amidst low investor activity.

The active S&P SL20 dipped by 0.5% and the benchmark ASPI by 0.2%. Turnover was only Rs. 482 million involving 25 million shares.

Following four sessions of price gains, the indices closed lower with turnover dipping further below Rs. 500mn as investors stayed on the sidelines awaiting directional cues regarding the domestic debt restructuring.

EXPO (-2.0%), RCL (-1.1%), CICN (-1.5%), PLR (-9.9%), BIL (-1.9%), and AGSTN (-2.9%) end with price losses while LLUB (+1.8%), HELA (+3.3%), CFVF (+1.8%), FCT (+3.8%), and HNBX (+1.1%) closed in green. The breadth of the market was positive with 60 price gainers and 95 decliners.

Turnover was led by JKH (Rs. 96 million), EXPO (Rs. 32 million), and CALT (Rs. 30 million).

Foreigners recorded a net inflow of Rs. 18.8 million. Net foreign buying topped in LLUB at Rs. 25.8 million and selling topped in BPPL at Rs. 7.6 million.

First Capital said the market dipped into the red zone following four consecutive sessions of green amidst profit-taking. Both S&P and ASPI indices halted in the red zone, whilst the latter closed the day at 8,746 losing 20 points. Amongst the top negative contributors, EXPO witnessed selling pressure during the day owing to the decline in global freight rates, which dropped below pre-COVID levels.

Treasury shares witnessed continued investor interest for yet another day, mainly attributed to the downward revision of policy rates by 250bps and a decline in bond yields.

Turnover was 30% lower than the monthly average turnover on the back of limited retail participation as investors remained on the sidelines awaiting for further clarity on the macroeconomic front.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Seylan Bank, and Chevron Lubricants. Mixed interest was observed in Expolanka Holdings, Capital Alliance and Hela Apparel Holdings whilst retail interest was noted in LOLC Finance, Industrial Asphalts and Browns Investments.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 0.41%. The share price of John Keells Holdings decreased by 25 cents to Rs. 139.75.

Diversified Financials sector was the second highest contributor to the market turnover (due to Capital Alliance) whilst the sector index increased by 0.36%. The share price of Capital Alliance moved up by 30 cents to Rs. 32.50.

Expolanka Holdings, Seylan Bank and Chevron Lubricants were also included among the top turnover contributors. The share price of Expolanka Holdings lost Rs. 2.75 to Rs. 131.75. The share price of Seylan Bank gained by 20 cents to Rs. 28.20. The share price of Chevron Lubricants appreciated by Rs. 1.50 to Rs. 87.