Stock market begins fresh week negatively with low turnover

• Year-to-date net foreign outflow crosses Rs. 43 b mark

The Colombo stock market opened a fresh week on a negative note with lacklustre investor interest leading to low turnover. 

The All Share Price Index declined by 0.36%, or over 31 points, and the S&P SL20 dipped by 0.76%, or 25 points. Turnover was Rs. 1.7 billion involving 106.6 million shares. 

Furthermore, net foreign outflow is now over Rs. 43 billion following Rs. 505 million of net selling during the last two sessions. 

First Capital said the bourse remained in the red territory for the third consecutive day and marked a significant drop in turnover to a two-and-a-half-month low.

“The index set off on a downslide at the commencement and displayed a sideways movement until the first hour of the session. Subsequently the market witnessed a considerably steep plummet and hit an intraday low of 8,725 as investors resolved on booking profits in selected counters. By mid-day the market gained a slight recovery and moved on a sideways drift and closed for the day at 8,770,” First Capital added.

It said turnover was generated by a joint contribution of 35% from the Food, Beverage and Tobacco, and Transportation sectors. 

Asia Securities said the ASPI narrowed its earlier losses on the back of a gradual recovery during the second half of the session, however closed in red as a result of price declines in heavyweight counters such as LOLC, EXPO, and BIL. 

“The ASPI reached an intra-day low of 8,726 (-76 points) and subsequently clawed back around 44 points to close with modest losses, while turnover declined as investors maintained a risk-averse approach throughout the session,” Asia added.

It said on the sectoral front, a few hotel sector stocks saw renewed buying interest from investors on prospects of a faster-than-expected tourism recovery which has made the current price levels more attractive to investors.

NDB Securities said the ASPI closed in red as a result of price losses in counters such as LOLC Holdings, Expolanka Holdings and Browns Investments.

It said high net worth and institutional investor participation was noted in Sampath Bank. Mixed interest was observed in Expolanka Holdings, Hayleys and John Keells Hotels, while retail interest was noted in Browns Investments, SMB Leasing and Citrus Leisure. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments), while the sector index increased by 0.15%. The share price of Browns Investments lost 20 cents (2.15%) closing at Rs. 9.10.

The Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings), while the sector index decreased by 1.50%. The share price of Expolanka Holdings decreased by Rs. 2.50 (1.51%) closing at Rs. 163.50.

Sampath Bank, Hayleys and Citrus Leisure were also included among the top turnover contributors. The share price of Sampath Bank moved down by 50 cents (0.96%) to close at Rs. 51.80. The share price of Hayleys recorded a loss of Rs. 2.40 (2.40%) to close at Rs. 97.50. The share price of Citrus Leisure appreciated by Rs. 1 (12.20%) to close at Rs. 9.20.