Stock market takes a breather after ASPI briefly crossing 10,000-point level

The Colombo stock market took a breather yesterday after the ASPI briefly crossed the 10,000-point level ahead of the month end today.

The benchmark ASPI declined by 7 points and the active S&P SL20 shed over 15 points or 0.5%. Turnover was Rs. 3.4 billion involving 214 million shares.

Asia Securities said the indices edged down after witnessing a strong first half as investors resorted to profit-taking in front-line stocks at higher levels amid taking a “wait-and-see” approach.

The ASPI crossed the 10,000 mark at market open, however declined to 9,927 (-32 points) immediately before picking up again to 10,007 (+48 points) in mid-afternoon trade. Nevertheless, the index witnessed a subdued second half and reached a low of 9,932 (-27 points) before closing out at 9,951 (-7 points).

Price losses in LIOC (-0.4%), LOFC (-2.3%), EXPO (-1.5%), ACL (-1.7%), SAMP (-3.4%), and BIL (-1.3%) dampened momentum during the session while PACK (+5.4%), LWL (+7.2%), CIC (+2.3%), CICX (+4.7%), and COCO (+11.3%) ended with price gains. Turnover was led by LIOC (Rs. 364 million), PACK (Rs. 363 million), LWL (Rs. 239 million), LOFC (Rs. 236 million), and CIC (Rs. 215 million). The breadth of the market closed negative with 89 price gainers and 109 decliners.

Asia also said foreigners recorded a net inflow of Rs. 45.4 million. Net foreign buying topped in JKH at Rs. 79 million and selling topped in LWL at Rs. 74.1 million.

First Capital said ASPI closed the day flat as investors chose to be on the side-lines awaiting direction on interest rates from the upcoming policy review meeting scheduled for 6 October. 

In response to that, index plunged significantly and displayed sizable volatility throughout the session before closing the day at 9,951, losing 7 points. Profit taking was witnessed predominantly on Transportation (mainly EXPO) and Energy sector counters yet persistent rally on Capital goods sector (mainly Tiles) partly offset the losses. 

NDB Securities said high net worth and institutional investor participation was noted in LOLC Finance, Lanka IOC and John Keells Holdings. Mixed interest was observed in Ex-pack Corrugated Cartons, Lanka Walltiles and Expolanka Holdings whilst retail interest was noted in SMB Leasing, Renuka Agri Foods and Marawila Resorts.

The Capital Goods sector was the top contributor to the market turnover (due to Lanka Walltiles) whilst the sector index gained 0.33%. The share price of Lanka Walltiles moved up by Rs. 5.70 (7.19%) to close at Rs. 85.

Materials sector was the second highest contributor to the market turnover (due to Ex-Pack Corrugated Cartons and CIC Holdings) whilst the sector index increased by 1.14%. The share price of Ex-Pack Corrugated Cartons gained 90 cents (5.39%) to close at Rs. 17.60. The share price of CIC Holdings appreciated by Rs. 1.90 (2.28%) to close at Rs. 85.10.

Lanka IOC and LOLC Finance were also included amongst the top turnover contributors. The share price of Lanka IOC decreased by Rs. 1 to close at Rs. 284.50. The share price of LOLC Finance recorded a loss of 20 cents (2.33%) to close at Rs. 8.40.