Bourse bearish ahead of DDR

The Colombo stock market turned bearish yesterday ahead of the crucial Domestic Debt Restructuring announcement but foreigners were optimistic resulting in net inflow of Rs. 171 million.

Both S&P SL20 and ASPI declined by 0.7%. Turnover was Rs. 1.5 billion involving 57 million shares.

Asia Securities said following four consecutive sessions of price gains, the indices moved downwards investors remained on the sidelines leading into DDR. SAMP (-2.6%), HAYL (-2.2%), ACL (-3.7%), SCAP (-2.9%), MELS (-4.4%), VONE (-1.3%), AAIC (-2.6%), SLTL (-2.2%), and DIST (-8.8%) recorded price losses during the session while LIOC (+3.9%), TJL (+2.7%), BIL (+1.9%), and LLUB (+1.5%) scaled price gains. Overall, 54 stocks closed in green while 116 settled with losses.

Turnover was driven by off-board transactions (27% of total turnover). JKH (Rs. 307 million) topped the turnover list, followed by SAMP (Rs. 251 million), and LIOC (Rs. 112 million).

Asia also said foreigners recorded a net inflow of Rs. 171.7 million. Net foreign buying topped in JKH at Rs. 139.5 million and selling topped in KHL.N at Rs. 18.4 million. 

First Capital said the overall market was on a downward trend during the day, as it closed at 9,369, losing 65 points. Profit-taking was visible on the banking and diversified financial counters, whilst LIOC positively contributed to the index and gained some traction ahead of future price revisions. Profit-taking stance was seen on the banking sector counters during the day due to concerns pertaining to the DDO which is expected to take place during the coming days. 

NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank, John Keells Holdings, and Hemas Holdings. Mixed interest was observed in Lanka IOC, Expolanka Holdings and John Keells Hotels whilst retail interest was noted in Browns Investments, Amana Bank and LOLC Finance. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 0.32%. The share price of John Keells Holdings increased by 50 cents to Rs. 150.

The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank) whilst the sector index decreased by 1.22%. The share price of Sampath Bank lost Rs. 1.50 to Rs. 55.20.

Lanka IOC, Browns Investments and John Keells Hotels were also included among the top turnover contributors. The share price of Lanka IOC moved up by Rs. 5 to Rs. 132.75. The share price of Browns Investments recorded a gain of 10 cents to Rs. 5.50. The share price of John Keells Hotels appreciated by 10 cents to Rs. 17.10.