The Colombo stock market suffered its biggest decline in recent months despite high turnover as investor fears heightened over a worst-case scenario of the COVID-19 pandemic. 

The All Share Price Index plunged by 2.4% or 198 points and the S&P SL20 declined by 2.3% or 72 points. Turnover was Rs. 5 billion involving 242.6 million shares. 

Health authorities reported the highest ever death toll of 94, bringing the total to 4,821. Early this week, Sri Lanka’s COVID death toll overtook China’s tally.  For the past few days, Sri Lanka has been reporting over 2,000 new COVID infections, bringing the cumulative total to over 320,000, of whom over 30,000 are active. 

First Capital said the bourse continued to fall in the negative territory for the second straight day as investors sought shelter from the rising market uncertainty, while recording an index low of almost three-weeks. 

“Continuous gains in the ASPI leading to some profit taking in selected leading counters and surge in the number of COVID patients and death rates seem to have led to some panic selling in the market. 

Index displayed a sharp downtrend throughout the session, closing at an intraday low of 8,012,” First Capital added.

It said turnover was led by the Transportation sector, closely followed by the Capital Goods sector, collectively accounting for a total contribution of 45%.

NDB Securities said the ASPI fell by over 2% today, due to fears of increasing coronavirus caseload impacting investor sentiment. 

Investor favourites, LOLC Holdings, Expolanka Holdings and Browns Investments saw 5-6% drop in prices. 

NDB said high net worth and institutional investor participation was noted in Printcare and Cargills. Mixed interest was observed in LOLC Holdings, Royal Ceramics and Hayleys, whilst retail interest was noted in SMB Leasing non-voting, Browns Investments and Expolanka Holdings. Foreign participation in the market activity remained at subdued levels with foreigners closing as net buyers.

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index lost 5.51%. The share price of Expolanka Holdings decreased by Rs. 4.30 (5.53%) to close at Rs. 73.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to Royal Ceramics), whilst the sector index decreased by 2.87%. The share price of Royal Ceramics recorded a loss of Rs. 2.30 (5.56%) to close at Rs. 39.10.

LOLC Holdings, Browns Investments and Dipped Products were also included amongst the top turnover contributors. The share price of LOLC Holdings lost Rs. 28 (5.86%) to close at Rs. 449.50. The share price of Browns Investments moved down by Rs. 0.40 (5.80%) to close at Rs. 6.50. The share price of Dipped Products declined by Rs. 3 (5.24%) to close at Rs. 54.30.

Asia Securities said the indices moved downwards throughout the session, weighed by price declines in recent active counters, while turnover continued at stronger levels, supported by EXPO which recorded the highest turnover (Rs. 1.3 billion) during the day. 

Asia said foreigners recorded a net inflow of Rs. 18.4 million while their participation remained flat at 1.1% of turnover (previous day 3.7%). Estimated net foreign buying topped in TAFL at Rs. 7.4 million and net foreign selling topped in TILE at Rs. 5.7 million. 

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