The Colombo stock market continued its miserable run for the second consecutive day, erasing Rs. 600 billion in value in the process and increasing the year-to-date value-wipe out to a staggering Rs. 2.6 trillion. 

The market capitalisation yesterday fell below the Rs. 3 trillion mark to end at Rs. 2.9 trillion, down from Rs. 5.5 trillion end of last year. 

The active S&P SL20 Index fell by nearly 10% and the ASPI by 8% yesterday which suffered the same fate as Monday owing to triggering two circuit breakers and closing in quick time. Turnover however improved to Rs. 800 million involving 92 million shares. 

Foreigners continued to be net buyers collecting bargain-price blue chips.

Asia Securities said trading for the day was halted for the second consecutive session on Tuesday as the more liquid S&P SL20 index hit the circuit-breaker threshold of 10% in early hours due to price losses in EXPO (-18.8%), LOLC (-17.2%), LOFC (-25.4%), HAYL (-16.6%), MELS (-15.7%). The ASPI fell below the 7,000 mark, declining as much as 8.1% (-608 points) to close out at 6,905, its lowest level since March 2021. 

Turnover was supported by COMB (Rs. 271 million), EXPO (Rs. 175 million), and LOLC (Rs. 42 million). Overall, 179 stocks settled with losses while seven ended in green.

Asia also said foreigners recorded a net inflow of Rs. 40.7 million while their participation declined to 3.0% of turnover (previous day 3.5%). Net foreign buying topped in LLUB at Rs. 17 million and selling topped in SAMP.N at Rs. 0.6 million.

First Capital said the Bourse lapsed deeply into the red zone as investors were compelled to set on a selling spree in desperate hope for stabilisation on both economic and political fronts and causing an erosion of Rs. 599.2 billion worth of total market capitalisation over the last two days. 

“As soon as the market opened trading was halted as the S&P SL20 index dropped over 5% from the previous close and halted again for the second time during the day with the S&P SL20 index plunging over 7.5% and subsequently the market closed at 6,905 losing 608 points after a short trading session as S&P SL20 index dropped over 10%,” First Capital said adding turnover was led by a joint contribution of 58% led by the Banking sector and Transportation sector. 

NDB Securities said the indices closed in red as a result of price losses in counters such as John Keells Holdings, Expolanka Holdings, and Sampath Bank.

High net worth and institutional investor participation were noted in Commercial Bank. Mixed interest was observed in Expolanka Holdings, LOLC Holdings, and Chevron Lubricants, whilst retail interest was noted in SMB Leasing voting and nonvoting, Industrial Asphalts, and Browns Investments. 

The Banking sector was the top contributor to the market turnover (due to Commercial Bank), whilst the sector index lost 3.79%. The share price of Commercial Bank decreased by 90 cents (1.77%) to close at Rs. 50.

The transportation sector was the second-highest contributor to the market turnover (due to Expolanka Holdings), whilst the sector index decreased by 18.73%. The share price of Expolanka Holdings lost Rs. 22.95 (18.77%) to close at Rs. 99.30.

LOLC Holdings, Browns Investments, and Chevron Lubricants were also included among the top turnover contributors. The share price of LOLC Holdings moved down by Rs. 55.75 (17.17%) to close at Rs. 269. The share price of Browns Investments recorded a loss of Rs. 1 (19.61%) to close at Rs. 4.10. The share price of Chevron Lubricants declined by Rs. 8.70 (11.57%) to close at Rs. 66.50.

With multiple triggers, spotlight falls  on circuit breaker