Bourse loses winning streak but ends on the up for 4th consecutive week

The nine-day winning streak at the Colombo stock market ended yesterday but closed on the up for the fourth consecutive week.

The All Share Price Index (ASPI) dipped by 0.57%, or 44 points, and the SandPSL20 closed down 0.27%, or eight points. Turnover was Rs. 3.55 billion, lower in comparison to Rs. 4.7 billion on Thursday.

For the week the ASPI gained 142.30 points (1.91%) while the S&P SL20 gained 50.93 points (1.69%). Turnover averaged Rs. 3.9 billion, improving from Rs. 3.4 billion last week, according to Asia Securities. 

First Capital said the nine-day winning streak was defeated reverting the direction of the market to negative, predominantly due to profit-taking by retailers. 

“The index moved downwards during the early hour of trading thereafter, experienced a short-lived bounce-back, and hit its second bottom during mid-day. Later market witnessed a gradual recovery and closed at 7,600, losing 44 points,” First Capital added. 

It said the Capital Goods sector led the turnover for the session, closely followed by Food and Beverage, making a combined contribution of 54%.

Asia Securities also said the indices trended downwards following market opening as investors realised gains from previous sessions. 

“The ASPI reached an intra-day low of 7,510 (down 135 points) before witnessing a sharp recovery (90 points) to close marginally downwards. Turnover remained strong led by retail and HNI activity in counters such as BIL, HAYL and LOLC,” Asia added.

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 were noted in John Keells Holdings and Hatton National Bank. Mixed interest was observed in Royal Ceramics, Dipped Products and Hayleys, whilst retail interest was noted in Expolanka Holdings, LOLC Holdings and Browns Investments. Foreign participation in the market remained at subdued levels with foreigners closing as net sellers.

During the week, the ASPI and the S&P SL20 gained 1.91% and 1.69%, respectively, whilst recoding an average daily turnover of Rs. 3.93 billion.

Capital Goods sector was the top contributor to the market turnover (due to Hayleys), whilst the sector index lost 0.35%. The share price of Hayleys gained Rs. 0.60 (0.71%) to close at Rs. 84.80.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments), whilst the sector index decreased by 0.77%. The share price of Browns Investments decreased by Rs. 0.20 (3.08%) to close at Rs. 6.30.

LOLC Holdings, Expolanka Holdings and Dipped Products were also included amongst the top turnover contributors. The share price of LOLC Holdings moved down by Rs. 10.75 (3.01%) to close at Rs. 346.50. The share price of Expolanka Holdings recorded a loss of Rs. 0.40 (0.76%) to close at Rs. 52.20. The share price of Dipped Products declined by Rs. 0.50 (0.82%) to close at Rs. 60.30.

Net foreign selling amounted to Rs. 108 million, down from Rs. 263 million on Thursday whilst year to date net outflow was Rs. 20.4 billion.

Estimated net foreign buying topped in John Keells Hotels at Rs. 5 million and net foreign selling topped in JKH at Rs. 59.9 million.