Bourse dips on price declines in heavyweights

• Debutant CALT gains by 109%

The Colombo stock market yesterday saw an end to its four-day-strong winning streak influenced by price declines in heavyweights with active investors booking profit whilst others abstained. 

The All Share Price Index declined by 42 points or 0.36% and the S&P SL20 dipped by 15 points or 0.37%. Turnover was Rs. 7.4 billion involving 302.4 million shares.

Asia Securities said after witnessing sharp gains over the last four sessions, the indices closed lower due to price declines in index heavyweights EXPO (-0.3%), BRWN (-3.1%), LOLC (-2.8%) and RCL (-1.1%).

 EXPO led turnover, generating Rs. 1.54 billion. Marking a strong debut on the exchange, Capital Alliance Ltd. (CALT.N) closed at Rs. 20.90 (+109.0% up from the IPO price of Rs. 10.) and generated Rs. 659 million of turnover while HAYL and ACL witnessed more activity during the session and recorded a gain of 5.3% and 2.3% respectively. 

“Following a negative start to the session, the ASPI touched an intra-day low of 11,670 (-127 points) in the first hour of trading. However, the index recouped the losses owing to a sharp recovery in mid-afternoon trade and closed the session marginally lower. The breadth of the market turned negative with 87 price gainers and 118 decliners,” Asia said.

It added foreigners recorded a net outflow of Rs. 72 million while their participation declined marginally to 1.2% of turnover (previous day 1.4%). Net foreign buying topped in EXPO at Rs. 22 million and net selling topped in COMB.N at Rs. 42.5 million. 

First Capital said the bourse slipped back to the red zone, snapping the previous four-day rally on the back of profit-taking in selected counters while continuing its four-week Wednesday’s negative closing. 

“Index spiked to an all-time intraday high of 11,872 within the first few minutes of the trading supported by a few export-oriented counters. Afterwards, market displayed a sharp fall as index surpassed the psychological level of 11,800 mark. Eventually, market managed to trade positively during the mid-day but failed to hold on to the position and closed at 11,754,” First Capital added. 

It said turnover was led by a joint contribution of 44% from Diversified Financials sector and Transportation sector. 

NDB Securities said high net worth and institutional investor participation was noted in Expolanka Holdings, Commercial Bank and Hayleys. Mixed interest was observed in ACL Cables, Brown & Company and Guardian Capital Partners whilst retail interest was noted in SMB Leasing, Browns Investments and Capital Alliance.