Lacklustre week for Colombo bourse

The Colombo stock market saw a lacklustre week with weak investor sentiment prompting indices to close on a mixed note. 

The benchmark ASPI gained 49.94 points (0.60%) and the S&P SL20 declined 17.87 points (0.65%) during the week. Turnover averaged Rs. 1,980 million, declining from Rs. 2,457 million last week.

Asia Securities said the market ended the week on a low note on Friday amid generating a moderate turnover as retail and HNI investors took to the side-lines awaiting directional cues. 

The ASPI commenced trading with a gap-up of 53 points to 8,373 and remained in the narrow range of 8,340-8,380 in the first hour of the session. 

However, the index moved downwards at the back-end of the session as investors engaged in mild profit-taking activities ahead of the weekend.  Among actively traded counters, LOLC group ended mixed with BIL and LOLC recording a gain of 4.0 percent each while LOFC declined 2.0% during the session.  EXPO edged 0.7% up while JKH (-2.7%) and HAYL (-2.8%) closed in red. 

Turnover stood at Rs. 1,567 million (previous session Rs. 1,620 million) led by BIL (Rs. 519 million), EXPO (Rs. 186 million), and LOFC (Rs. 100 million). The breadth of the market ended weak with 69 gainers and 109 decliners.

Asia also said foreigners recorded a net outflow of Rs. 41.4 million. Net foreign buying topped in DFCC at Rs. 6 million and selling topped in JKH at Rs. 37.5 million

First Capital said the ASPI closed the day flat, as investors continue to remain side-lined waiting for more clarity on the tax front. Index opened on an upbeat note but regressed to red during mid-session as selling pressure took charge. 

Subsequently, the index see-sawed from green to red with massive volatility before closing for the day at 8,316 losing 4 points. However, LOLC group contributed positively to hold the ASPI in green although profit booking was witnessed in counters such as JKH and SAMP. Turnover was led by the Food, Beverage and Tobacco sector accounting for a 41% contribution. 

NDB Securities said the ASPI edged down as a result of price losses in counters such as John Keells Holdings, Sampath Bank and Hayleys.

It said high net worth and institutional investor participation was noted in John Keells Holdings and Ceylon Grain Elevators. Mixed interest was observed in Expolanka Holdings, Lanka IOC and LOLC Holdings whilst retail interest was noted in Browns Investments, LOLC Finance and SMB Leasing nonvoting. 

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments) whilst the sector index gained 1.18%. The share price of Browns Investments increased by 40 cents (4%) to close at Rs. 10.40.

Transportation sector was the second-highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index increased by 0.67%. The share price of Expolanka Holdings gained Rs. 1.50 (0.67%) to close at Rs. 224.50.

LOLC Finance, Lanka IOC and John Keells Holdings were also included among the top turnover contributors. The share price of LOLC Finance moved down by 20 cents (2.02%) to close at Rs. 9.70.

The share price of Lanka IOC recorded a loss of Rs. 3.00 (4.75%) to close at Rs. 60.20. The share price of John Keells Holdings declined by Rs. 3.50 (2.71%) to close at Rs. 125.50.

Separately Lanka Tiles announced an interim dividend of Rs. 1.90 per share whilst Sunshine Holdings announced a final dividend of 50 cents per share.