Colombo stock market weakens

The Colombo stock market weakened further yesterday with indices down amidst lower turnover as investor sentiment turned bearish.

The active S&P SL20 Index was down by 1.5% and the benchmark ASPI by 0.6%. Turnover was Rs. 2.5 billion involving 116 million shares.

Asia Securities said the indices remained in negative territory amid moderate turnover as investors awaited cues on next week’s budget. The ASPI closed at 9,011 (-60 points or -0.7%), however the S&P SL20 index settled at 2,945 with a loss of more than 1.5% (-45 points) largely due to price losses EXPO (-3.6%), LOLC (-2.4%), LOFC (-2.5%), HAYL (-2.5%), AAIC (-2.5%), and SAMP (-1.5%). 

Turnover was recorded at Rs. 2.5 billion, coming in lower than the 10-day average of Rs. 4.2 billion as investors opted for a “wait-and-see” approach ahead of the budget. LIOC topped the turnover list (Rs. 431 million) followed by EXPO (Rs. 277 million), KOTA (Rs. 187 million), and JKH (Rs. 165 million). 

Following a 38-point gap-up, the ASPI declined to an intra-day low of 8,965 (-107 points) in mid-day trading. The index pared losses thereupon and moved narrowly in the range of 9,010-9,020 for the rest of the session. Overall, 74 stocks recorded price gains while 131 closed out the session with losses. 

Asia also said foreigners recorded a net inflow of Rs. 68.9 million while their participation increased to 2.4% of turnover (previous day 1.6%). Net foreign buying topped in EXPO at Rs. 72.2 million while selling topped in AGAL at Rs. 7.2 million.

First Capital said the Index closed in red for the second straight session as some investors sought to profit-taking while others adopted a wait-and-see approach ahead of the interim budget scheduled for next week. However, following the import restriction announcement local manufacturing companies including the aluminium industry, witnessed renewed investor activity. 

Index skid steeply as soon as the market opened on the back of heavy profit taking but managed to recoup part of the losses towards the end of the session and closed at 9,011 losing 60 points. Turnover declined to LKR 2.5 billion (-19% from monthly average turnover of Rs. 3.1 billion) while the Food, Beverage and Tobacco sector along with the energy sector jointly contributed 50% to the total turnover.  

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Kahawatte Plantations and Horana Plantations. Mixed interest was observed in Lanka IOC, Expolanka Holdings and Kotagala Plantations whilst retail interest was noted in Asia Siyaka Commodities, Browns Investments and SMB Leasing. 

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Kotagala Plantations and Kahawatte Plantations) whilst the sector index edged down by 0.04%. The share price of Kotagala Plantations moved up by 80 cents (9.20%) to close at Rs. 9.50. The share price of Kahawatte Plantations appreciated by Rs. 3.80 (10.86%) to close at Rs. 38.80.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index edged down by 0.02%. The share price of Lanka IOC closed flat at Rs. 179.50.

Expolanka Holdings and John Keells Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 8.25 (3.60%) to close at Rs. 220.75. The share price of John Keells Holdings recorded a loss of 25 cents to close at Rs. 124.75.