Bearish sentiment persists at Bourse; crossings boost turnover

• ASPI down 3% and S&P SL20 by 4% this week so far despite IMF boost for Sri Lanka

The Colombo stock market persisted with its negative run yesterday dipping sharply despite the IMF boost for Sri Lanka.The active S&P SL20 declined by 1.6% and the benchmark ASPI was down by 1.4%. Since Friday’s closing, the ASPI has lost 275 points of nearly 3% and S&P SL20 by 118 points or 4%.

Boosted crossings, turnover, however, rose to a 12-day high of Rs. 3.4 billion involving 164.3 million shares. Market also saw net foreign outflow yesterday.

Asia Securities said the market extended losses for a third consecutive session as the indices moved downwards weighed by price declines in LIOC (-3.0%), SAMP (-4.9%), COMBN (-3.6%), BIL (-3.0%), LOLC (-1.3%), and AEL (-3.2%). SLTL and LHCL, which recorded sharp price gains in the last few sessions, closed in red with a loss of 0.4% and 5.8% respectively. 

On the contrary, SCAP (+2.5%), AAIC (+2.2%), SUN (+1.1%), and CCS (+5.3%) ended higher on retail buying. SAMP (-23 points), COMB (-17 points), and HNBN (-15 points) ended as the biggest laggards on the ASPI. The breadth of the market remained negative with 63 price gainers and 112 decliners.

Turnover was led by crossings which accounted for 55.4% of turnover with 2 crossings recorded in 

AGALN (Rs. 1.6 billion), 3 crossings in CTC (Rs. 269 million) and 1 crossing each in CARG (Rs. 24.5 million) and HAYL (Rs. 24  million). Asia also said foreigners recorded a net outflow of Rs. 298.1 million. Net foreign buying topped in MELS at Rs. 27.8 million and selling topped in CTC at Rs. 327.6 million.

First Capital said the Bourse further dipped by 131 points and recorded at 9,396 primarily due to profit taking on the banking sector, which was the biggest contributor to the index. 

LIOC continued to decline with panic-selling as uncertainty emerged among investors as margins are expected to shrink due to possible fuel price revisions which will be determined based on the 2018 price formula. 

Consumer services sector witnessed active investor participation driven by the tourism sector which experienced more than 76,000 tourist arrivals during the first three weeks of March 2023. 

Mixed sentiment was observed on treasury shares despite a drastic dip in T-bill yields by 100bps. Market turnover was recorded at a substantial level hitting a 12-day high contributed by the Food, Beverage and Tobacco sector (60%) and largely led by crossings. AGAL (45.3 million shares at Rs. 35 each) witnessed a stake change of 29% through an off-board transaction with D. R. Industries Ltd.

NDB Securities said mixed interest was observed in Sri Lanka Telecom, Hayleys and Lanka IOC whilst retail interest was noted in SMB Leasing nonvoting, LOLC Finance and Browns Investments. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Agalawatte Plantations and Ceylon Tobacco Company) whilst the sector index lost 0.44%.

The share price of Agalawatte Plantations increased by 40 cents to Rs. 31.90. The share price of Ceylon Tobacco Company lost Rs. 15.25 to Rs. 642.75.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys) whilst the sector index decreased by 0.50%. The share price of Hayleys recorded a gain of 10 cents to Rs. 79.70.

Sri Lanka Telecom and Lanka IOC were also included amongst the top turnover contributors. The share price of Sri Lanka Telecom moved down by 50 cents to Rs. 112. The share price of Lanka IOC declined by Rs. 5.25 to Rs. 170.50.