Stock market closes on a negative note

The Colombo stock market lost its recovery mode by closing on a negative note though turnover improved. Asia Securities said following three consecutive sessions of gains, the indices closed lower yesterday dragged by price declines in heavyweight stocks across sectors. The ASPI ended with a loss of 106 points (-0.9%) due to price declines in EXPO (-3.5%), BIL (-3.4%), RCL (-3.2%) and SPEN (-3.4%). 

In comparison to the ASPI, the more liquid S&P SL20 Index closed with a marginal loss of 18 points (-0.4%) as price gains in CLC (+19.3%), JKH (+1.9%), COMB (+1.4%), and LOFC (+3.5%) extended supportive cushioning to the index. 

It said turnover amounted to Rs. 3,232 million improving from Rs. 2,255mn recorded in the previous session, led by CLC (Rs. 757 million), LOFC (Rs. 460mn), and BIL (Rs. 229 million). The breadth of the market continued negative with 65 price gainers and 147 decliners.

Asia also said foreigners recorded a net outflow of Rs. 25.3 million while their participation declined to 1.9% of turnover (previous day 2.7%). Net foreign buying topped in SHL at Rs. 19 million while net selling topped in SUN at Rs. 28.5 million.

First Capital said the bourse slid to the red zone while continuing the Tuesday trend of being red for the fourth consecutive week despite recording an improved turnover and retail participation.

“The market opened with a huge upsurge following the bull run but slid on a gradual downtrend till the end of the session. Index succumbed with mounting profit-taking on retail favourite counters such as EXPO and BIL and eventually closed lower while breaking the three days winning spree at 12,365, losing 106 points,” First Capital said adding turnover was mainly led by Diversified Financials sector with a contribution of 50%. 

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

It said high net worth and institutional investor participation was noted in Melstacorp, John Keells Holdings and LOLC Holdings. Mixed interest was observed in Expolanka Holdings, Sinhaputhra Finance and Softlogic Life Insurance, whilst retail interest was noted in Lanka Orix Finance, Commercial Leasing & Finance and Browns Investments. 

Diversified Financials sector was the top contributor to the market turnover (due to Commercial Leasing & Finance, Lanka Orix Finance and Sinhaputhra Finance) whilst the sector index gained 0.30%. The share price of Commercial Leasing & Finance increased by Rs. 7.50 (19.28%) to close at Rs. 46.40. The share price of Lanka Orix Finance gained 90 cents  (3.50%) to close at Rs. 26.60. The share price of Sinhaputhra Finance appreciated by Rs. 6.80 (24.20%) to close at Rs. 34.90.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index decreased by 1.36%.

The share price of Browns Investments moved down by 50 cents (3.45%) to close at Rs. 14.

Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings recorded a loss of Rs. 11.50 (3.46%) to close at Rs. 321.