Locals give fresh jolt to CSE, foreigners remain bullish

The Colombo stock market yesterday suffered a fresh jolt with trading suspended for a half-hour following the S&P SL20 index dropping by 5% as local investor sentiment remained besieged. The setback was despite improved turnover and volume whilst foreigners continue to be net buyers. The CSE ended the day with S&P SL20 down by 4.77% and the benchmark ASPI dipping 4.88% to below 10,000 points level for the first time since October last year.

Turnover was Rs. 2.7 billion involving 265 million shares. Asia Securities said the benchmark indices ended with heavy losses due to a broad-based pressure, prompted by retail and HNI selling in front-line heavyweight counters EXPO, BIL, LOFC, LOLC, HAYL, and VONE. 

The ASPI trended downwards throughout the trading and eventually ended below the 10,000 levels while the S&P SL20 index plunged as much as 5%, triggering a market-wide circuit breaker for a 30-minute trade halt during closing hours.

Notable price losses were recorded in LOFC (-18.7%), LOLC (-11.2%), BIL (-11.0%), AAIC (-24.2%), SCAP (-23.9%), VONE (-13.1%), HAYL (-8.2%), EXPO (-4.7%) and RCL (-8.2%). 

Turnover was led by EXPO (Rs. 544 million), BIL (Rs. 202 million), and LOLC (Rs. 192 million). Overall, 16 stocks ended higher while 208 recorded price losses for the day.

Asia said foreigners recorded a net inflow of Rs. 147.7 million while their participation increased to 5.8% of turnover (the previous day 4.2%). Net foreign buying topped in MELS at Rs. 90.5 million while selling topped in CTHR at Rs. 77.5 million.

First Capital said the Bourse dropped down for the 2nd day while recording the highest intraday loss in 4 ½ weeks amidst the uncertainties attached to the aggravated power cuts and fuel shortages.

Following a panic selling by retailers, the index displayed a continuous decline and was dragged down below the 10,000 level. Towards the end, the market was halted for 30 minutes since the S&P SL20 index dropped over 5% from the previous close as pressure from margin providers got escalated. Eventually, ASPI ended the session at a 5 ½ month low closing of 9,648, losing 495 points.

First Capital said turnover was led by the Transportation and Diversified Financials sector with a joint contribution of 40%.