Colombo stock market suffers further dip

The Colombo stock market posted its second consecutive sharp fall yesterday amidst relatively low investor activity and turnover.

The All Share Price Index and the S&P SL20 dipped by 1% whilst turnover was Rs. 5.3 billion involving only 160.3 million shares. Yesterday, S&P SL20 fell by 2% and ASPI by 1.3% with Rs. 6 billion turnover. 

Asia Securities said the indices fell to three-week lows recording a second consecutive session of losses due to price declines in heavyweight counters across sectors. 

It said the ASPI commenced the session with sharp volatility, dropping 165 points in early trade and immediately surged 173 points to reach an intra-day high of 13,218 (+7 points). Thereupon, the index trended downwards dragged by price declines in LOLC (-2.4%), SAMP (-2.1%), CINS (-2.8%) and EXPO (-1.4%). 

“After touching 13,039, the ASPI pared some losses owing to a brief 56-point recovery in the last hour of trading as investors opted to snap up stocks at relatively lower levels,” Asia said, adding turnover was led by EXPO (Rs. 1 billion) AAIC (Rs. 556 million) and BIL (Rs. 376 million). The breadth of the market continued negative with 68 gainers and 159 price decliners.

Asia also said foreigners recorded a net outflow of Rs. 67.4 million while their participation declined to 1.8% of turnover (previous day 2.4%). Net foreign buying topped in EXPO (Rs. 20.5 million) and selling topped in CCS (Rs. 30.6 million).

First Capital said the bourse closed in the red territory continuing a bearish sentiment for the second straight session with a hefty intraday-loss. 

“The Index moved with massive volatility throughout the day with the index plunging steeply within the initial half hour. Subsequently index climbed up and continued to see-saw from green to red hitting an intraday low of 13,038 while investors resorted to booking profits inducing a selling spree and closed for the day at 13,066 losing 144 points,” First Capital said adding turnover was led by a joint contribution of 61% from the Capital Goods sector, Transportation sector and Food, Beverage and Tobacco sector. 

NDB Securities said the ASPI closed in red as a result of price losses in counters such as LOLC Holdings, Sampath Bank and Ceylinco Insurance.

It said high net worth and institutional investor participation was noted in Expolanka Holdings, LOLC Holdings and ACL Cables. Mixed interest was observed in Softlogic Life Insurance, Access Engineering and Royal Ceramics whilst retail interest was noted in Browns Investments, Industrial Asphalts and SMB Leasing. 

The Capital Goods sector was the top contributor to the market turnover (due to Access Engineering and Royal Ceramics) whilst the sector index lost 0.61%. The share price of Access Engineering recorded a gain of 80 cents to close at Rs. 35. The share price of Royal Ceramics declined by 70 cents (0.91%) to close at Rs. 76.

The Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index decreased by 1.42%. The share price of Expolanka Holdings decreased by Rs. 5.25 (1.37%) to close at Rs. 377. 

Softlogic Life Insurance and Browns Investments were also included amongst the top turnover contributors. The share price of Softlogic Life Insurance gained Rs. 14.75 (11.30%) to close at Rs. 145.25. The share price of Browns Investments moved down by 30 cents (1.81%) to close at Rs. 16.30.

Separately John Keells Holdings, On’ally Holdings and JAT Holdings announced their interim dividends of 50 cents, Rs. 2.10 and 25 cents per share respectively.