Colombo stock market begins March with sharp dip

Tuesday, 4 March 2025 03:41 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday began the new month of March on a dismal note with a sharp dip in indices and lacklustre turnover.

The benchmark ASPI was down by 1.9% and the active S&P SL20 by 2.1%. Turnover was Rs. 1.5 billion involving 65.2 million shares.

First Capital said the Colombo Bourse entered March on a notably downbeat note, experiencing heightened volatility driven by a palpable profit-taking sentiment. The ASPI saw a short-lived uptick during the opening hours of today’s session, only to falter and gradually decline throughout the day. The Banking sector proved to be the primary source of downward pressure on the ASPI, with HNB, COMB, and NDB among the most significant negative contributors, joined by MELS and BUKI. On the flip side, CTC, SPEN, and AHUN stood out as the top positive contributors.

Investor participation remained subdued, with turnover slipping as against Rs. 4.1 billion average for the month. The Banking sector dominated turnover contributions, accounting for 28%, while the Capital Goods and Food, Beverage, and Tobacco sectors collectively contributed a solid 35%.

Asia Securities said the market witnessed a downward trend due to profit-taking in the banking sector amid price losses in DFCC (-4.0%), NDB (-3.4%), HNBN (-2.8%), COMBN (-2.0%), and SAMP (-1.4%). Moreover, frontline stocks like, AEL (-3.3%), BIL (-2.5%), and HHL (-2.1%) closed in red, triggering a broad-based decline in the ASPI during the session. HNBN (-25 points) came in as the major laggard for the day. The market breadth was negative with 34 price gainers and 173 decliners.

Turnover was led by HHL (Rs. 166 million), NDB (Rs. 97 million), and HNBN (Rs. 94 million). Foreigners recorded a net outflow of Rs. 127.4 million. Net foreign buying topped in AHUN at Rs. 50.3 million and selling topped in HHL at Rs. 157.2 million.

NDB Securities said high net worth and institutional investor participation was noted in Hemas Holdings, John Keells Holdings and National Development Bank. Mixed interest was observed in Hatton National Bank, Sampath Bank and Browns Investments whilst retail interest was noted in Nation Lanka Finance, Waskaduwa Beach Resort and Co-Operative Insurance Company.

The Banking sector was the top contributor to the market turnover (due to National Development Bank, Hatton National Bank and Sampath Bank) whilst the sector index lost 2.20%. The share price of National Development Bank lost Rs. 4 to Rs. 113.50. The share price of Hatton National Bank

moved down by Rs. 9 to Rs. 315.75. The share price of Sampath Bank declined by Rs. 1.75 to Rs. 120.75.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hemas Holdings and John Keells Holdings) whilst the sector index decreased by 1.54%. The share price of Hemas Holdings decreased by Rs. 2.50 to Rs. 115.75. The share price of John Keells Holdings recorded a loss of 20 cents to Rs. 21.10.

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