Colombo stock market down 5% this week

The Colombo stock market reinforced its struggle finishing the week down by 5% though yesterday the indices closed in green but it was an over two month low turnover.

The active S&P SL 20 index was down by 5.7% and the benchmark ASPI by 5%. Last week ASPI declined by 2.5% and S&P SL20 by 3.6%. Average daily turnover was Rs. 877 million down from Rs. 1 billion last week.

Asia Securities said the indices regained footing yesterday after a four-session declining streak with the ASPI rising 23 points (+0.3%) and the S&P SL20 index ticking up 16 points (+0.7%). However, retail and HNI activity was lacklustre, resulting in a low turnover of Rs. 386 million (previous session Rs. 791 million). 

Following several sessions of downward momentum, the ASPI commenced trading on a positive note and reached an intra-day high of 7,137 (+79 points) in the first hour of the session. Thereupon, the index pared gains as the session progressed and eventually closed at 7,081. 

Among actively trading counters, EXPO (+2.0%), LOLC (+2.7%), LOFC (+3.3%), and VONE (+4.1%) witnessed a brief recovery, reversing some of their weekly losses. The breadth of the market turned positive with 106 price gainers and 59 decliners.

Asia also said foreigners recorded a net outflow of Rs. 15.7 million while their participation in terms of turnover declined to 3.4% of turnover (previous day 12.6%). Net foreign buying topped in ASCO at Rs. 1.6 million and net selling topped in HAYC at Rs. 16 million.

First capital said the Bourse slid to green on a narrow gain amidst a two- and a half month low turnover. Further, investor participation was subdued, recording dull activities ahead of the massive protests scheduled for Saturday and uncertainties on the country’s political context.

“Index opened on an upbeat note and continued to escalate till mid-session but gradually lost momentum and closed for the day at 7,081 gaining 23 points. Turnover was led by a joint contribution of 39% from the Transportation sector and Diversified Financials sector,” First Capital added.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Holdings, Expolanka Holdings and Seylan Bank.

It said high net worth and institutional investor participation remained subdued for the day whilst mixed interest was observed in Expolanka Holdings, Lanka IOC and LOLC Holdings. Retail interest was noted in Browns Investments, LOLC Finance and SMB Leasing nonvoting.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 2.03%. The share price of Expolanka Holdings increased by Rs. 3.25 (2.03%) to close at Rs. 163.

Diversified Financials sector was the second-highest contributor to the market turnover (due to LOLC Holdings and LOLC Finance) whilst the sector index increased by 1.16%. The share price of LOLC Holdings moved up by Rs. 9.50 (2.68%) to close at Rs. 364.25. The share price of LOLC Finance appreciated by 20 cents (3.33%) to close at Rs. 6.20.

Lanka IOC and Browns Investments were also included among the top turnover contributors. The share price of Lanka IOC closed flat at Rs. 74.20. The share price of Browns Investments closed flat at Rs. 6.30.