Colombo stock market suffers highest daily loss

The Colombo stock market yesterday suffered the highest daily loss in four months with the benchmark index plunging due to lacklustre sentiment and investors waiting for feedback from the ongoing IMF program review.

Benchmark ASPI plunged by 40.0 points or -0.4% and the S&P SL20 by down 14.1 points or -0.4%. Turnover was Rs. 550.01 million involving 22.8 million shares.

Asia Securities said investors remained on the sidelines yesterday amidst the shorter trading week while awaiting cues from the ongoing IMF program review.

 As a result, turnover dropped to a three-month low at Rs. 550 million. 

The ASPI maintained levels between 11,240 and 11,260 until mid-day trading, however the index saw a late-decline, closing at 11,216 (-40 points). COMB (-11 points) came in as the biggest laggard on the ASPI. The breadth of the market was negative with 65 price gainers and 108 decliners. 

First Capital said the market adopted a cautious tone as investors grappled with uncertainty in anticipation of pivotal meeting between the President and the IMF today (26), marking the conclusion of the first review of the IMF program for Sri Lanka. This cautious sentiment exerted downward pressure on the index which closed in the red at 11,217, recording a decline of 40 points. 

Furthermore, the hotel sector displayed slight interest during the day, likely in anticipation of the upcoming tourist season. Additionally, there was notable foreign activity in JKH, which topped foreign buying totalling Rs. 19 million. Conversely, the banking sector experienced modest selling pressure during the trading session. 

Turnover reached Rs. 550 million, marking nearly a four-month low and reflecting a 68% decrease compared to the monthly average turnover of Rs. 1.7 billion. The Capital Goods sector led the overall turnover with a contribution of 32%. 

Foreign investors sustained their net buying position for the second consecutive session, with an inflow of Rs. 13.2 million during the day.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, National Development Bank, and Union Bank. Mixed interest was observed in Softlogic Capital, Browns Investments and Lanka IOC whilst retail interest was noted in Industrial Asphalts, LOLC Finance and UB Finance Company. 

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

Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 0.23%. The share price of John Keells Holdings increased by Rs. 1 (0.53%) to close at Rs. 191. 

Insurance sector was the second highest contributor to the market turnover (due to Union Assurance) whilst the sector index decreased by 0.27%. The share price of Union Assurance closed flat at Rs. 39.80.

National Development Bank, Softlogic Capital and Browns Investments were also included amongst the top turnover contributors. The share price of National Development Bank gained Rs. 1 (1.50%) to close at Rs. 67.50. The share price of Softlogic Capital recorded a loss of Rs. 0.30 (2.56%) to close at Rs. 11.40. The share price of Browns Investments appreciated by Rs. 0.10 (1.79%) to close at Rs. 5.70.