Colombo stock market ends week muted despite IMF boost

Saturday, 15 June 2024 01:25 - - {{hitsCtrl.values.hits}}

Investors for the second consecutive day failed to be influenced by the Government’s triumphant over the release of third tranche of IMF funding as the Colombo stock market finished the week on a lacklustre note.

Yesterday the S&P SL20 declined by 0.6% and the ASPI by 0.4%. On Thursday, they declined by 0.4% and 0.2% respectively. For the week, S&P SL20 lost 0.2% whilst the ASPI closed flat. In the previous week ASPI and the S&P SL20 gained 1.7% and 2.4% respectively.

Average daily turnover this week however improved to Rs. 2.04 billion from Rs. 1.13 billion.

Asia Securities said indices closed lower on Friday mainly due to price losses in DIAL (-10.4%), HAYL (-1.2%), AAIC (-1.9%), and RCL (-1.9%). DIAL (-17 points), COMBN (-8 points), and HNBN (-6 points) came in as the biggest laggards on the ASPI. The breadth of the market was negative with 64 price gainers and 108 decliners.

Turnover of Rs. 1.3 billion on Friday was led by JKH (Rs. 304 million), MGT (Rs. 79 million), and HAYL (Rs. 77 million). Foreigners generated a net outflow of Rs. 181 miliion due to net selling in JKH (Rs. 172 million). Hayleys saw the most net foreign buying of Rs. 9.9 million.

First Capital said the broader market experienced a dull trading day as investor sentiment remained bearish driven by uncertainties surrounding External Debt Restructuring which caused both indices to close in the red.

The Banking sector counters witnessed a down trend today amidst uncertainties while export-oriented companies continued to witness revitalised interest as USD stabilised over Rs. 300 levels. Accordingly, ASPI closed at 12,311 losing 49 points where DIAL, COMB, HNB, LOLC and HAYL emerged as the top negative contributors. Furthermore, selling pressure on DIAL was also observed during the day as the share reached the XD date for Rs. 1.34/share announced on 16 February 2024.

With thin trading volumes and mixed participation from both retail investors and HNWIs, turnover was 17.7% down from the month’s average. The Capital Goods sector led turnover at 36.4%, followed by the Materials and Consumer Durables sectors jointly contributing to 25.9% of overall turnover.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Hayleys Fabric and Teejay Lanka. Mixed interest was observed in Hayleys, Dipped Products and Lankem Developments whilst retail interest was noted in Dialog Axiata, Cargills Bank and Browns Investments.

The capital Goods sector was the top contributor to the market turnover (John Keells Holdings and Hayleys) whilst the sector index gained 0.31%. The share price of John Keells Holdings increased by Rs. 2 to Rs. 205. The share price of Hayleys moved down by Rs. 1.25 to Rs. 104.75.

The materials sector was the second highest contributor to the market turnover (Dipped Products) whilst the sector index edged up by 0.04%. The share price of Dipped Products recorded a gain of 40 cents to Rs. 37.90.

Hayleys Fabric and Lankem Developments were also included among the top turnover contributors. The share price of Hayleys Fabric closed flat at Rs. 44.50. The share price of Lankem Developments appreciated by 10 cents to Rs. 16.50.