Colombo stock market slumps to 2 month low; S&PSL20 slips to YTD negative territory

The Colombo stock market yesterday slumped to a 2-month low whilst the active S&P SL20 slipped to negative territory YTD for the first time this year.

With a dip of 0.8% yesterday S&P SL20 Index YTD is negative 0.4%. The benchmark ASPI declined by 0.8% yesterday reducing its YRD gain to 6.16% from 9% last week.

Asia Securities said the indices closed lower with notable price losses recorded by LOFC (-1.8%), LOLC (-2.7%), BIL (-1.7%), COMBN (-1.6%), SCAP (-3.1%), and HAYL (-1.4%).

The breadth of the market remained negative with 33 price gainers and 148 decliners.

Turnover was recorded at Rs. 929 million led by AHUN (Rs. 133 million), and SPEN (Rs. 121 million).

A net foreign inflow of Rs. 55 million was recorded for the day supported by SPEN (Rs. 122 million) while HNBN (Rs. 84 million) recorded the highest net outflow during the session.

First Capital said the bourse closed in red and hit a 2-month low on the back of the President’s speech made at the parliament on Wednesday.

Furthermore, concerns regarding DDR and margin calls also triggered selling interest during the morning session. However, towards the latter part the market rebounded slightly, and partially offset losses made during the first half aided by the buying interest in SPEN and HNB. Despite the poor participation from the local investors, foreigners continued to show confidence in the market and recorded net foreign inflows for the 6th consecutive day.

NDB Securities said high net worth and institutional investor participation was noted in Aitken Spence, Hatton National Bank and Aitken Spence Hotel Holdings. Mixed interest was observed in Expolanka Holdings, Lanka IOC and Dialog Axiata whilst retail interest was noted in Browns Investments, LOLC Finance and Prime Lands Residencies.

The Capital Goods sector was the top contributor to the market turnover (due to Aitken Spence) whilst the sector index lost 0.48%. The share price of Aitken Spence closed flat at Rs. 135.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank) whilst the sector index decreased by 1.21%. The share price of Hatton National Bank closed flat at Rs. 115.

Expolanka Holdings, Lanka IOC and Browns Investments were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved down by 50 cents to Rs. 157.75. The share price of Lanka IOC recorded a loss of one Rupee to Rs. 167. The share price of Browns Investments declined by 10 cents to Rs. 5.70.