Bearish start for stock market in new week

• YTD net foreign outflow tops Rs. 15 b mark

The Colombo stock market began a new week on a negative note with bearish investor sentiment and record-low activity in recent months. 

The All Share Price Index (ASPI) dipped by 1.2% or 87 points and the S&P SL20 index was down 1% or 30 points. Turnover was only Rs. 812.4 million, whereas the year-to-date (YTD) daily average turnover is Rs. 6.5 billion.

Last week, the ASPI and the S&P SL20 gained 2.74% and 3.65% respectively, whilst recording a daily average turnover of Rs. 1.79 billion.

Net foreign selling was Rs. 66.56 million with the YTD figure topping the Rs. 15 billion mark.

First Capital said the week started reverting the direction of the market back to negative recording a one-and-half week low. 

“The Index experienced a bumpy downtrend since the beginning of the session and closed at 7,160, losing a massive 87 points,” it said. 

The Capital Goods sector led the turnover for the session, closely followed by the Banking and Materials sector making a joint contribution of 60%. 

Asia Securities said: “The indices trended downwards throughout the session, led by counters such as JKH, LOLC and VONE. Turnover remained at moderate levels as investors remained in wait-and-see mode.”

NDB Equities said the ASPI closed in red as a result of price losses in counters such as LOLC Holdings, JKH and Vallibel One.

It said high net worth and institutional investor participation was noted in Dialog Axiata and Sampath Bank. Mixed interest was observed in Richard Pieris and Company, Expolanka Holdings and Dipped Products, whilst retail interest was noted in Industrial Asphalts and Browns Investments. 

The Capital Goods sector was the top contributor to the market turnover (due to JKH), whilst the sector index lost 1.83%. 

The share price of JKH recorded a loss of Rs. 1.75 (1.17%) closing at Rs. 148, whilst foreign holdings decreased by 227,387 shares.

The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank), whilst the sector index decreased by 0.36%. The share price of Sampath Bank lost Rs. 0.75 (0.48%) closing at Rs. 154.25, whilst foreign holdings decreased by 349,406 shares.

Dipped Products, Expolanka Holdings and LOLC Holdings were also included amongst the top turnover contributors. The share price of Dipped Products decreased by Rs. 2.30 (4.51%) to close at Rs. 48.70. 

The share price of Expolanka Holdings moved down by Rs. 1 (2.10%) to close at Rs. 46.60. The share price of LOLC Holdings declined by Rs. 10.75 (3.41%) to close at Rs. 304.75.

Separately, Softlogic Life Insurance and Tea Smallholder Factories announced their interim dividends of Rs. 2.50 and Rs. 1.50 per share respectively.

Estimated net foreign buying topped in DIAL at Rs. 6.4 million and net foreign selling topped in SAMP at Rs. 53.9 million.