Colombo stock market ends week with 3% dip

The Colombo stock market ended the week with 3% loss as investor sentiment remained negative amidst lacklustre activity.

The ASPI lost 277.20 points (2.99%) and the S&P SL20 lost 93.31 points (3.44%). The previous week the fall was softer with both indices down by 1.6%.

Average daily turnover was Rs. 878 million down from Rs. 994 million in the previous week.

Asia Securities said indices extend losses with the ASPI dipping below 9,000 to close at a two-month low on Friday weighed by price losses in LIOC (-1.3%), BIL (-1.8%), SAMP (-1.2%), LOFC (-1.8%), TKYOX (-3.3%), and TKYON (-3.2%).

EXPO (+1.4%), DIAL (+1.9%), PABC (+3.8%), UBC (+5.9%), and PINS (+1.0%) saw price gains during the session.

The ASPI initially declined to an intra-day low of 8,949 (-63 points), however witnessed a gradual recovery to 9,010 (-2 points) in the second half of the session before closing out at 8,983 (-29 points). 

Overall, 63 stocks recorded price gains during the session while 108 ended with losses.

Turnover yesterday was Rs. 896 million (previous session Rs. 929 million) led by EXPO (Rs. 128 million), DIAL (Rs. 94 million), and LIOC (Rs. 71 million).

Asia said foreigners ended on the selling side with a net outflow of Rs. 146 million due to net selling in KHL (Rs. 53 million), JKH (Rs. 50 million), and DIAL (Rs. 47 million). Net foreign buying topped in MELS at Rs. 9.7 million.

First Capital said the month-end selling pressure brought the market down and halted the day at 8,983, losing 29 points. The weak investor sentiments continued today as retailers opted to wait on the side-lines as the index broke the 9,000 psychological barrier.

Selling interest persisted in LIOC as new competition is expected to enter and finalise the agreement within the month of May and commence operations after 45 days of signing.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Hotels, Hatton National Bank and John Keells Holdings. Mixed interest was observed in Expolanka Holdings, Dialog Axiata and Lanka IOC whilst retail interest was noted in Browns Investments, LOLC Finance and Amana Bank.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank) whilst the sector index lost 0.52%. The share price of Hatton National Bank recorded a loss of 25 cents to Rs. 114.75.

The Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index increased by 1.42%. The share price of Expolanka Holdings increased by Rs. 2.25 to Rs. 160.

Dialog Axiata, Lanka IOC and John Keells Hotels were also included amongst the top turnover contributors. The share price of Dialog Axiata gained 20 cents to Rs. 11.00. The share price of Lanka IOC moved down by Rs. 2.25 to Rs. 164.75. The share price of John Keells Hotels appreciated by Rs. 10 cents to Rs. 17.80.