Despite the breakthrough $ 1 billion International Sovereign Bonds (ISB) settlement by the Government, the Colombo stock market dipped yesterday amidst low investor activity with brokers adducing multiple reasons.

The All Share Price Index declined by over 29 points or 0.37% and the S&PSL20 dipped by over 11 points or 0.39%. Turnover was below average at Rs. 2.3 billion with 146.6 million shares traded. 

On Monday, there was expectation that investors would turn bullish after the Government kept Sri Lanka’s unblemished track record of honouring debt and avoiding the default that had been anticipated by some global rating agencies and investment banks. 

Despite dips in recent days, year to date the ASPI is up 19.47% and S&PSL 20 by 15.5%.

First Capital said the bourse closed negative on the back of month-end credit settlements and profit taking. 

“ASPI soared to 8,147 during the first 46 minutes of the session, followed by a steep downfall during the first half of session hitting an intraday low at 8,082. Thereafter, the index recovered and again displayed a downtrend during the latter part of session, losing 30 points while closing at 8,093,” First Capital added. 

It said turnover was led by the Transportation sector, followed by the Materials sector, collectively accounting for a total contribution of 47%. 

Asia Securities too said the indices followed a wave pattern during the session as profit-taking continued in counters that saw strong gains over the past two weeks. 

Turnover was recorded at moderate levels, led by HNI activity in EXPO. Transportation, Materials, Capital Goods and Diversified Financials sectors led activity, collectively accounting for 72.2% of turnover. 

Asia said foreigners recorded a net outflow of Rs. 83 million, while their participation declined to 4.4% of turnover (previous day 19.1%). Estimated net foreign buying topped in RCL at Rs. 14.6 million and net foreign selling topped in TJL at Rs. 36 million. 

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Expolanka Holdings, Commercial Leasing & Finance and Browns Investments.

It said high net worth and institutional investor participation remained subdued for the day, whilst mixed interest was observed in Expolanka Holdings, Dipped Products and LOLC Holdings. 

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index lost 2.07%. The share price of Expolanka Holdings decreased by Rs. 1.40 (2.08%) to close at Rs. 66.

The Materials sector was the second highest contributor to the market turnover (due to Dipped Products), whilst the sector index increased by 0.17%. The share price of Dipped Products lost Rs. 1.10 (1.89%) to close at Rs. 57.20.

LOLC Holdings, Royal Ceramics and Browns Investments were also included amongst the top turnover contributors. The share price of LOLC Holdings edged up by Rs. 0.50 (0.11%) to close at Rs. 460.75. The share price of Royal Ceramics closed flat at Rs. 38.60. The share price of Browns Investments declined by Rs. 0.10 (1.56%) to close at Rs. 6.30.

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