Bearish week for Colombo stock market

The Colombo stock market yesterday completed a week of sustained bearish sentiments with both indices down by 5% to a 11-week low amidst below par turnover renewing concerns among investors.

The All Share Price Index declined by 1%, or 76 points, and the S&PSL20 declined by 0.6%. Turnover amounted to Rs. 1.37 billion.

During the week, the ASPI and the S&P SL20 lost 5.42% and 4.70%, respectively, whilst recording an average daily turnover of 1.11 billion, according to NDB Equities.

First Capital said the Bourse continued on the negative direction for the fifth consecutive session experiencing a week of red while recording an 11-week low. 

“Index witnessed a downward movement followed by a short-lived uptrend during the early hour of trading. Thereafter market recorded a downtrend once again and closed at 6,854 losing 76 points,” it added.

Materials sector dominated the turnover for the session with a contribution of 32%. Parcel trades in Lanka Lubricants and HNB boosted the turnover amounting to 17%. 

Asia Securities said the ASPI followed a wave pattern towards the beginning of the session and then declined gradually. Turnover remained flat 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, Browns Investments and Ceylon Tobacco Company.

It said high net worth and institutional investor participation was noted in Hatton National Bank and Chevron Lubricants. Mixed interest was observed in LOLC Holdings, Dipped Products and Expolanka Holdings, whilst retail interest was noted in Vallibel One and Browns Investments. 

NDB Equities said materials sector was the top contributor to the market turnover (due to Chevron Lubricants and Dipped Products), whilst the sector index lost 2.01%. The share price of Chevron Lubricants decreased by Rs. 2.20 (2.47%) closing at Rs. 86.90 whilst foreign holdings decreased by 1,997,595 shares. The share price of Dipped Products moved down by Rs. 1.60 (3.64%) to close at Rs. 42.30.

Capital Goods sector was the second highest contributor to the market turnover, whilst the sector index decreased by 1.51%.

Expolanka Holdings, Browns Investments and LOLC Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 1 (2.34%) to close at Rs. 41.70. The share price of Browns Investments recorded a loss of Rs. 0.30 (6.12%) to close at Rs. 4.60. The share price of LOLC Holdings declined by Rs. 11 (3.84%) to close at Rs. 275.75.

First Capital also said the market experienced the highest net foreign outflow after two weeks while recording low participation. Net foreign selling rose to Rs. 267 million from Rs. 37 million on Thursday. Year to date net foreign outflow was Rs. 15.6 billion.

Estimated net foreign buying topped in CIC at Rs. 4.7 million and net foreign selling topped in LLUB at Rs. 173.6 million.