Stock market closes on negative note; ends week 2% down

The Colombo stock market completely closed on a negative note although turnover improved as some investors partly took profit whilst others remained on the sidelines due to macro-economic concerns.

The All Share Price Index dropped sharply by over 2.3% or 264 points whilst the S&PSL20 Index shed 0.6% or 26 points. The latter’s fall was the first in 13 consecutive days whilst ASPI has been negative since mid this week. Turnover amounted to Rs. 7 billion involving 306 million shares.

During the week, the ASPI lost 1.87%, the S&P SL20 gained 1.62%, whilst recording an average daily turnover of Rs. 8.7 billion.

Asia Securities said pulled down by index-heavy CLC, the ASPI slipped below the 11,000 mark plunging more than 2% its biggest single-day drop since 19 November, while the more liquid S&P SL 20 index also ended lower snapping its 12-day gaining streak due to price declines in EXPO, LOLC, VONE, and HAYL. 

Turnover stood at Rs. 7,082 million, improving from Rs. 6,480 million recorded in the previous session (2), on the back of strong retail and HN buying in BIL (Rs. 2,412 million) and EXPO (Rs. 1,005 million). 

“Following Thursday’s sharp decline (-158 points), the ASPI commenced the session on a flat note and remained in negative territory throughout the session despite witnessing short bouts of recovery in between,” Asia said.

It said price declines in CLC (-21.0%) derailed the recovery momentum in the ASPI while other illiquid stocks such as LOFC (-8.6%) and NIFL (-10.4%) also weighed on the index throughout the session. With CLC contributing 310 negative points to the index, the ASPI has shed 422 points in the last two sessions. The breadth of the market remained negative as 45 stocks ended higher while 155 recorded price declines.

Asia also said foreigners recorded a net inflow of Rs. 7 million while their participation declined marginally to 1.2% of turnover (previous day 1.5%). Net foreign buying topped in DIAL at Rs. 21 million while net selling topped in BIL at Rs. 17.3 million.

First Capital said the bourse remained in the red zone for the third straight day while recording its highest intraday loss in two weeks.

“The Index displayed significant volatility and traded red throughout the session as investors panicked on hearing rise in macroeconomic uncertainties and emergence of the new COVID-19 variant in the country. However, during the mid-day, the market showcased an upswing but failed to retain the position and slid down to close at 10,988,” First Capital added.

It said turnover was led by a joint contribution of 60% from the Food, Beverage and Tobacco sector and the Diversified Financials sector.

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Commercial Leasing & Finance, Lanka Orix Finance and LOLC Development Finance.

It said high net worth and institutional investor participation was noted in Royal Ceramics, CIC Holdings and Expolanka Holdings. Mixed interest was observed in Vallibel One and Hayleys Fabric, whilst retail interest was noted in Browns Investments, Commercial Leasing & Finance and Lanka Orix Finance.

Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Browns Investments), whilst the sector index reduced by 0.38%. The share price of Browns Investments increased by Rs. 0.10 (0.69%) to close at Rs. 14.50.

Diversified Financials sector was the second-highest contributor to the market turnover (due to Commercial Leasing & Finance, Lanka Orix Finance and LOLC Holdings), whilst the sector index decreased by 7.55%. The share price of Commercial Leasing & Finance moved down by Rs. 10.70 (21%) to close at Rs. 40.20. The share price of Lanka Orix Finance recorded a loss of Rs. 2.20 (8.56%) to close at Rs. 23.50. The share price of LOLC Holdings declined by Rs. 5.50 (0.56%) to close at Rs. 974.75.

Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 3.25 (1.15%) to close at Rs. 280.25.