Selling spree drags CSE down by nearly 2%

Wednesday, 12 March 2025 06:13 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday fell sharply led by a selling spree by investors which albeit improved turnover in comparison to Monday.

Both indices declined by 1.9% whilst turnover amounted to Rs. 2.5 billion involving 81 million shares. On Monday turnover hit a new low of Rs. 825 million.

First Capital said the Colombo Bourse carried Monday’s downturn momentum into yesterday as persistent selling sentiment exerted pressure on the market. The ASPI closed in the red at 15,711, steadily falling from the market open and registering a drop of 290 points.

Key negative contributors to the ASPI included HNB, SFCL, LOLC, COMB, and HAYL. In contrast, positive contributors were limited in both number and impact, with CARG, LION, and ATL standing out as the most significant performers. Turnover showed a recovery driven by intensified selling activity. The participation of HNW investors increased, particularly in transactions involving Banking sector stocks. The Banking sector was the largest contributor to overall turnover, accounting for 41%, followed by the Diversified Financials and Capital Goods sectors, which together contributed 28%.

Asia Securities said the indices declined dragged by price declines in LOLC (-3.9%), PABC (-3.7%), HAYL (-3.6%), NTBN (-3.0%), and DIPD (-2.9%). Crossings accounted for 33.5% of turnover was mainly led by the off-board transaction in HNBN (Rs. 582 million). HNBN (-21 points), SFCL (-18 points), and LOLC (-18 points) ended as the major drivers of the ASPI during the session. The breadth of the market was negative with 23 price gainers and 176 decliners.

Foreigners recorded a net outflow of Rs. 7 million. Net foreign buying topped in LION at Rs. 18.8 million and selling topped in NTB at Rs. 36 million.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, Galle Face Capital Partners and Pan Asia Banking Corporation. Mixed interest was observed in R.I.L. Property, Access Engineering and Nations Trust Bank whilst retail interest was noted in SMB Leasing, Nation Lanka Finance and LOLC Finance.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Pan Asia Banking Corporation and Sampath Bank) whilst the sector index lost 2.01%. The share price of Hatton National Bank decreased by Rs. 7.50 to Rs. 303.50. The share price of Pan Asia Banking Corporation moved down by Rs. 1.30 to Rs. 34. The share price of Sampath Bank recorded a loss of Rs. 1.50 to Rs. 118.50.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Galle Face Capital Partners) whilst the sector index decreased by 2.55%. The share price of Galle Face Capital Partners lost Rs. 3.50 to Rs. 46.40.

R.I.L. Property was also included amongst the top turnover contributors with its share price closing flat at Rs. 14.80.

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