Stock market starts fresh week with losses

The Colombo stock market began a fresh week with both indices down though turnover remained healthy.

The active S&P SL20 Index was down by 1.23% and the benchmark ASPI by 0.5%. Turnover amounted to Rs. 2.4 billion involving 127.3 million shares. Foreigners recorded a net inflow of Rs. 12.6 million with net buying on Expo amounting to Rs. 8.5 million and net selling of Rs. 25.5 million in hSenid Business Solutions. 

Asia Securities said the indices closed lower for the third consecutive session yesterday as heavyweights LIOC (-4.4%), LOLC (-3.7%), LOFC (-2.5%), EXPO (-1.7%), and JKH (-1.6%) extended price losses amid low market activity. Nevertheless, SCAP (+16.1%), and AAIC (+13.0%) ended with double-digit gains on active retail buying. 

Turnover was led by SCAP (Rs. 853 million), AAIC (Rs. 397 million), and AGST (Rs. 127 million). LIOC (-10 points) ended as the biggest laggard on the ASPI, followed by LOLC (-9 points) and JKH (-7 points). The breadth of the market closed weak with 74 price gainers and 106 decliners.

First Capital said the ASPI continued to fall lower marginally, as retail selling was observed on index heavyweights (mainly LIOC, LOLC and EXPO). Accordingly, index displayed a downtrend since the beginning of the session yet partly recouped earlier losses towards the end as persistent rally was witnessed on Softlogic companies (AAIC and SCAP) on the back of mergers and takeover speculations floating among investors. 

AGST witnessed a stake change of c.0.8% through an off-board transaction totalling to 3.9 million shares at Rs. 16.20.

NDB Securities said high net worth and institutional investor participation was noted in Agstar and hSenid Business Solutions. Mixed interest was observed inSoftlogic Capital, Softlogic Life Insurance and Lanka IOC whilst retail interest was noted in Browns Investments, Ambeon Capital and SMB Leasing (voting and nonvoting). 

The Insurance sector was the top contributor to the market turnover (due to Softlogic Life Insurance) whilst the sector index gained 1.33%. The share price of Softlogic Life Insurance gained Rs. 12.80 (12.97%) to close at Rs. 111.50. 

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover whilst the sector index decreased by 0.66%.

Softlogic Capital, Agstar, Lanka IOC and Ambeon Capital were also included amongst the top turnover contributors. The share price of Softlogic Capital increased by Rs. 2.30 (16.08%) to close at Rs. 16.60. The share price of Agstar moved down by 80 cents (4.71%) to close at Rs. 16.20. The share price of Lanka IOC recorded a loss of Rs. 8.75 (4.36%) to close at Rs. 192. The share price of Ambeon Capital declined by 10 cents to close at Rs. 12.40.