CSE suffers trading halt as investor sentiment worsens

The Colombo stock market suffered yet another trading halt yesterday as investor sentiment worsened amidst low activity.

The active S&P SL20 Index which triggered the halt, ended the day down by 4.6% whilst the benchmark ASPI shed nearly 4%. Turnover was Rs. 1.4 billion involving 72.6 million shares.

The market has seen multiple trading suspensions since mid-last week.

Asia Securities said the indices extended their price declines yesterday mainly due to losses recorded by EXPO (-9.7%), LOLC (-12.5%), LOFC (-16.5%), BIL (-14.3%), CICX (-11.1%), ACL (-11.7%) and RCL (-7.6%).  Turnover was led by EXPO (Rs. 517mn), BIL (Rs. 177mn) and LOFC (Rs. 112mn).

Earlier, the more liquid S&P SL20 index plunged more than five percent during the day, triggering the circuit-breaker for a 30-trade halt.

Asia also said net foreign inflow was recorded for the fourth consecutive session at Rs. 59 million led by SPEN (Rs. 44 million), EXPO (Rs. 23 million) and MELS (Rs. 15 million). The breadth of the market was negative with 31 price gainers and 157 decliners.

First Capital said the Bourse closed lower and continued to be in the red zone for the second consecutive day as investors speculated a significant surge in policy rates at the upcoming policy review.

“With the steep plunge in LKR against the greenback and amidst unresolved political uncertainty, the index witnessed a steep fall in the beginning. Following a 30 min trading halt, market slightly recovered yet closed lower at 8,250, losing 331 points,” First Capital said adding turnover was largely led by the Transportation sector followed by Food, Beverage and Tobacco sector with a joint contribution of 57%.

NDB Securities said the high net worth and institutional investor participation was noted in Aitken Spence, Ceylon Tobacco Company and DFCC Bank. Mixed interest was observed in LOLC Holdings, Access Engineering and Royal Ceramics, whilst retail interest was noted in Browns Investments, LOLC Finance and Expolanka Holdings.

It said the Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index lost 9.71%. The share price of Expolanka Holdings decreased by Rs. 16.25 (9.73%) to close at Rs. 150.75.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments), whilst the sector index decreased by 3.87%. The share price of Browns Investments lost Rs. 1 (14.29%) to close at Rs. 6.

LOLC Finance, LOLC Holdings and Aitken Spence were also included amongst the top turnover contributors. The share price of LOLC Finance moved down by Rs. 1.60 (16.49%) to close at Rs. 8.10. The share price of LOLC Holdings recorded a loss of Rs. 56.75 (12.46%) to close at Rs. 398.75. The share price of Aitken Spence appreciated by Rs. 1.10 (1.41%) to close at Rs. 79.