Stock market turns negative again

Colombo stock market proved Tuesday’s investor sentiment was fickle as indices dipped yet again yesterday amidst low volume. 

The All-Share Price Index shed 1.8% and the S&P SL20 dropped sharply by 3%. This was a reversal of fortunes when on Tuesday the indices gained by 6% and 7% respectively. 

Turnover yesterday was Rs. 1.95 billion higher in comparison to 1.1 billion on Tuesday.

Asia Securities said the indices closed lower largely due to price declines in EXPO (-3.3%), LOFC (14.2%), HAYL (-5.7%), VONE (-5.3%), JKH (-1.5%) and BIL (-5.4%). Turnover was led by EXPO (Rs. 696 million), JKH (Rs. 192 million), and LOLC (Rs. 151 million). 

Net foreign inflow continued for the third consecutive session (Rs. 147 million), supported by net buying in JKH (Rs. 187 million) and MELS (Rs. 20 million). 

Asia said earlier, the ASPI commenced the session surpassing the 8,800 mark with a gap-up of 251 points and touched an intra-day high of 8,832 in the first hour of trading. However, the index moved downwards thereupon as front-line stocks erased their early gains due to retail and HNI selling pressure. The ASPI eventually closed out the session at 8,581 (-157 points or -1.80%) while the more liquid S&P SL20 index ended at 2,798 (-74 points or -2.60%). 

The breadth of the market turned negative with 84 price gainers and 97 decliners.

First Capital said the Bourse regressed to the red zone again as ambivalent investors resorted to profit booking with limited retail participation as critical matters are still left undecided despite the appointment of new CBSL Governor. 

Amidst a short trading session, the index opened on an upbeat note and after a few minutes reached an intraday high of 8,836 but failed to continue positively as selling pressure took over causing the index to plunge with massive volatility. 

Subsequently, the index gradually recouped but slid back to red as investors booked profits in retail favourite counters expecting quick returns before closing for the day at 8,581 losing 157 points. Turnover was led by a joint contribution of 56% from the Transportation sector and Capital Goods sector, First Capital added.

Separately, Janashakthi Insurance Company announced a first and final dividend of Rs. 2.30 per share.