Colombo stock market ends week with losses

The Colombo stock market yesterday ended the week with losses, amidst relatively low investor activity.

The benchmark ASPI declined by 0.6% and the active S&P SL20 by 0.44%. Turnover was a low Rs. 841.23 million involving 33.34 million shares. Foreign investors remained net sellers, with a net outflow of Rs. 2.1 million.

During the week, the ASPI and S&P SL20 gained 0.6% and 0.2% respectively, while recording an average turnover of Rs. 817 million.

First Capital said the Colombo bourse witnessed a volatile trading session with the ASPI sharply declining in the early hours followed by gradual recovery. The ASPI remained broadly flat, reporting a 9-point drop, closing at 15,617. 

Investor participation remained subdued, mirroring the previous session, amid seasonal activity, with both retail and HNW segments showing limited engagement. SAMP, HNB, DFCC, MELS and LOLC emerged as the top negative contributors to the index. 

Specific counters within the Diversified Financials sector, including COCR and CFIN, attracted notable positive sentiment. Following the announcement of VAT exemptions on dairy products, investor focus pivoted to LMF and CCS, driving renewed momentum in both counters. 

The turnover stood at Rs. 841.2 million, marking a 68.2% decrease from the monthly average of Rs. 2.6 billion. 

The Food, Beverage and Tobacco sector was the most significant contributor to the turnover with a 22% share, followed by the Banking, and the Diversified Financials sectors jointly contributing 35%. 

NDB Securities said high net worth and institutional investor participation was noted in Alumex, Sampath Bank and John Keells Holdings. Mixed interest was observed in Commercial Credit & Finance, Lanka Milk Foods and Swisstek whilst retail interest was noted in SMB Leasing nonvoting, Nation Lanka Finance and Beruwala Resorts. 

Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Lanka Milk Foods) whilst the sector index edged up by 0.10%. 

The share price of Lanka Milk Foods moved up by Rs. 2.40 to close at Rs. 45.60.

The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank) whilst the sector index decreased by 0.73%. The share price of Sampath Bank decreased by Rs. 1.25 (1.12%) to close at Rs. 110.75.

Commercial Credit & Finance, Swisstek and Alumex were also included amongst the top turnover contributors. The share price of Commercial Credit & Finance gained one rupee to close at Rs. 65. The share price of Swisstek recorded a gain of one rupee to close at Rs. 49.60. The share price of Alumex appreciated by 30 cents to close at Rs. 15.50.