Stock market suffers 2% dip after two-day winning run

The Colombo stock market yesterday reversed the two-day winning streak with both indices suffering sharp dips amidst moderate activity.

The active S&P SL20 declined by 2% and the benchmark ASPI by 1.8%. Turnover was Rs. 1.45 billion involving 33 million shares.

Asia Securities said following two sessions of gains, the indices reversed course to close in the red. Following market open, the ASPI trended downwards to reach a low of 8,034. The index subsequently experienced some volatility during the session and closed at 8,028.

VONE (-24 points), HAYL (-16 points) and EXPO (-15 points) led the decline in the index.

Turnover remained at moderate levels, with a significant contribution from activity in LIOC (46%). No crossings were recorded during the session. Market breadth was negative with 42 counters up and 133 declining.

Asia also said foreigners recorded a net outflow of Rs. 47.3 million. Net foreign buying topped in SUN at Rs. 10.4 million and selling topped in HNB.N at Rs. 60 million.

First Capital said the ASPI reverted back to the red zone as selling pressure mounted following the CBSL’s decision to maintain the policy interest rates at their current level, causing deeper wounds to the investor sentiment. Accordingly, the index witnessed a steep fall since the beginning of the session and continued to descend further where retail favourites EXPO, LIOC and Diversified Financial sector counters majorly pulled down the index and closed the day at 8,028, losing 146 points.

NDB Securities said high net worth and institutional investor participation remained subdued for the day whilst mixed interest was observed in Lanka IOC, Expolanka Holdings and CIC Holdings nonvoting. Retail interest was noted in Browns Investments, Industrial Asphalts and LOLC Finance. 

The Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index lost 3.94%. The share price of Lanka IOC decreased by Rs. 8 (4.36%) to close at Rs. 175.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 1.53%. The share price of John Keells Holdings dipped by 50 cents to close at Rs. 139.50.

Expolanka Holdings, CIC Holdings nonvoting and Hatton National Bank were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 7.25 (4.91%) to close at Rs. 140.50. The share price of CIC Holdings nonvoting moved down by Rs. 1.10 (2.05%) to close at Rs. 52.50. The share price of Hatton National Bank declined by Rs. 1.40 (1.83%) to close at Rs. 75.