Colombo stock market dips to three-month amidst investor concern

•  High Rs. 19 interim dividend boosts Elpitiya Plantations by Rs. 16.90 (20.76%) to Rs. 98.30
•  Lanka IOC share drop by Rs. 7.25 (5.25%) to Rs. 130.75 on news of entry of China’s Sinopec

The Colombo stock market yesterday began a fresh week with losses forcing the index to dip to a three-month low due to lacklustre investor sentiment and activity.

The active S&P SL20 declined by 1.8% and the benchmark ASPI by 1.2%. Turnover was Rs. 599 million involving 27.4 million shares.

Asia Securities said the market commenced the week on a low note with the indices declining 1% each due to price losses in LIOC (-5.3%), EXPO (-3.4%), HAYL (-1.5%), COMBN (-2.5%), LOFC (-2.0%), SCAP (-3.6%), CICN (-1.3%), and CICX (-6.3%).

Nevertheless, ELPL (+20.8%), WATA (+6.4%), and SLTL (+4.0%) closed in green.

COMBN (-10 points), VONE (-10 points), and LIOC (-9 points) ended as the biggest laggards on the ASPI. The breadth of the market remained negative with 38 price gainers and 140 decliners.

LIOC topped the turnover list (Rs. 63 million), followed by SUN (Rs. 41million), and ELPL (Rs. 35million).

Foreigners recorded a net inflow of Rs. 5.5 million. Net foreign buying topped in HBS.N at Rs. 1.3 million and selling topped in LOFC.N at Rs. 0.5 million.

First Capital said the bourse wrapped the session up in red as it commenced the week on a negative note losing 105 points and hitting a three-month low to close the day at 8,611.

COMB topped the chart as a top negative contributor to the index as the investors were on the selling side amidst uncertainty and concerns of the DDR announcement that is yet to be released later this week. Furthermore, LIOC also caused the index to ease lower with the recent signing of the contract agreement with Sinopec Fuel Oil Lanka Ltd., for a long-term contract on import, storage, distribution and sale of petroleum products in the local retail market.

On the positive side Aitken Spence Group Elpitiya Plantation was amongst the active shares traded as it announced a notable dividend of Rs. 19 to its shareholders.

NDB Securities said high net worth and institutional investor participation was noted in Sunshine Holdings and Hatton National Bank. Mixed interest was observed in Lanka IOC, Elpitiya Plantations and Expolanka Holdings whilst retail interest was noted in Browns Investments, LOLC Finance and Softlogic Capital.

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Sunshine Holdings and Elpitiya Plantations) whilst the sector index lost 1.60%. The share price of Sunshine Holdings closed flat at Rs. 42.50. The share price of Elpitiya Plantations moved up by Rs. 16.90 (20.76%) to Rs. 98.30.

The Capital Goods sector was the second highest contributor to the market turnover whilst the sector index decreased by 0.38%.

Lanka IOC, Hatton National Bank and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Lanka IOC decreased by Rs. 7.25 (5.25%) to Rs. 130.75. The share price of Hatton National Bank recorded a loss of 25 cents to Rs. 118. The share price of Expolanka Holdings declined by Rs. 4.75 to Rs. 136.50.