Stock market turns negative despite key insights from SLIF

The Colombo stock market yesterday closed on a negative note, extending its struggle despite some key new policy and strategy announcements in the past two days via the ongoing virtually held Sri Lanka Investment Forum. 

After Monday’s dismal 0.3% gain, the two indices yesterday declined by 0.7% raising concerns among investors that the market was losing momentum. Turnover was below average at Rs. 2 billion involving 99 million shares.

First Capital said the bourse stirred up a pessimistic outlook by settling in the red, halting the market from rallying for the fourth straight session while failing to retain the seven-week high index. 

“ASPI took a nose-dived drop posting an intraday low of 7,536 within the first hour of trading and thereafter, recovered over the next 30 minutes and later drifted to a sideways movement throughout the session closing at 7,542 losing 50 points,” First Capital added. 

It said turnover was dominated by the Real Estate sector followed by the Capital Goods sector, accounting for a joint contribution of 54%. 

Asia Securities said following consecutive sessions of price gains, the indices declined during the session as investors realised gains from recent price increases. As the latest addition to the CSE, Prime Lands Residencies commenced trading today and witnessed sharp gains on its debut. The stock contributed 31% to turnover while overall activity remained at healthy levels. 

Asia said Real Estate, Capital Goods, Diversified Financials and Food, Beverage and Tobacco sectors led activity, collectively accounting for 72% of turnover. 

Foreigners recorded a net outflow of Rs. 22.8 million while their participation remained flat at 3% of turnover (previous day 3.1%). Estimated net foreign buying topped in HHL at Rs. 27.1 million and net foreign selling topped in SFIN at Rs. 16 million. 

NDB Securities said the ASPI closed in red as a result of price losses in counters such as LOLC Holdings, Commercial Bank and Browns Investments.

It said high net worth and institutional investor participation remained subdued for the day. Mixed interest was observed in Lanka Walltiles, Royal Ceramics and LOLC Holdings, whilst retail interest was noted in Prime Lands Residencies, Browns Investments and Industrial Asphalts. 

The Real Estate sector was the top contributor to the market turnover (due to Prime Lands Residencies), whilst the sector index lost 0.87%. The share price of Prime Land Residencies increased by Rs. 1.50 (14.42%) to close at Rs. 11.90.

Capital Goods sector was the second highest contributor to the market turnover (due to Royal Ceramics and Lanka Walltiles), whilst the sector index decreased by 0.63%. The share price of Royal Ceramics lost Rs. 0.30 (0.78%) to close at Rs. 38.30. The share price of Lanka Walltiles moved down by Rs. 3.40 (5.11%) to close at Rs. 63.10.

LOLC Holdings and Expolanka Holdings were also included amongst the top turnover contributors. The share price of LOLC Holdings recorded a loss of Rs. 4.50 (1.18%) to close at Rs. 377.75. The share price of Expolanka Holdings declined by Rs. 0.70 (1.45%) closing at Rs. 47.50 whilst foreign holdings decreased by 227,885 shares.