The Colombo stock market yesterday closed on a negative note ahead of the presentation of the 2022 Budget in Parliament.

The All Share Price Index declined by 20 points or 0.19% and the S&P SL 20 dipped by four points. Turnover however was better at Rs. 5.15 billion involving 213 million shares.

Asia Securities said after gaining 325 points in two sessions, the ASPI closed in red on price declines in CLC, while the more liquid S&P SL 20 index also edged lower due to price declines recorded in EXPO and RCL.

It said retail buying in LOFC drove turnover while overall activity remained moderate ahead of the Budget reading that was scheduled later during the day.

“Following a sharp 90-point gap up opening to 10,779, the ASPI witnessed a brief stabilisation in the narrow range of 10,710–10,750 in the first hour of trading. However, the index saw a subsequent drop to 10,652 in mid-afternoon trade dragged by price declines in index heavy CLC and NIFL and recovered slowly to close 20 points lower at 10,667,” Asia said. The breadth of the market also turned negative with 108 stocks declining and 88 closing higher.

For the week, the ASPI gained 34.33 points (0.32%) while the S&P SL20 lost 19.25 points (0.53%). Turnover averaged Rs. 7.6 billion improving from Rs. 5 billion last week. Asia said 109 stocks ended with gains while 84 closed lower.

First Capital said the bourse reversed back to the negative territory experiencing a moderate dip as investors stood by the sidelines amidst the Budget reading 2022.

“During the early 30 minutes of the trading session, the index pumped up to an intraday high of 10,790 and experienced a volatile yet gradual downward movement while hitting an intra-day low of 10,648. Later, the market experienced a slight uptrend and closed the day at 10,667,” First Capital added.

It said turnover was led by the Diversified financials and Transportation sectors making a combined contribution of 49%. Foreign investors remained net sellers to the tune of Rs. 38 million while recording low participation.

NDB Securities high net worth and institutional investor participation remained subdued for the day whilst mixed interest was observed in Lanka Orix Finance, Expolanka Holdings and LOLC Holdings whilst retail interest was noted in Browns Investments, R. I. L. Property and Panasian Power.

Diversified Financials sector was the top contributor to the market turnover (due to Lanka Orix Finance and LOLC Holdings) whilst the sector index lost 0.48%. The share price of Lanka Orix Finance increased by Rs. 1.40 (5.65%) to close at Rs. 26.20. The share price of LOLC Holdings appreciated by Rs. 9 (1.32%) to close at Rs. 692.75.

Transportation sector was the second-highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index decreased by 0.76%. The share price of Expolanka Holdings lost Rs. 1.50 (0.76%) closing at Rs. 195.75.

R. I. L. Property and Browns Investments were also included amongst the top turnover contributors. The share price of R. I. L. Property moved up by Rs. 1.20 (9.02%) to close at Rs. 14.50. The share price of Browns Investments recorded a loss of Rs. 0.20 (1.71%) to close at Rs. 11.50.

Rs. 8.5 b of Perpetual’s ill-gotten wealth to Treasury