Stock market dips by 1% due to profit taking; turnover high at Rs. 7.7 b

The Colombo stock market dipped by 1% yesterday owing to investors taking profit after record-high prices, whilst activity remained robust with over Rs. 7 billion turnover.

The All Share Price Index shed by 0.95% or 89 points and the S&P SL20 declined by 1.2% or 42 points. Year-to-date (YTD) on Friday, 3 September, the ASPI was up 37.5% and S&P SL20 was up 32.4%.

Turnover amounted to Rs. 7.7 billion involving a high share volume of 874.3 million.

Major contributors to ASPI’s dip yesterday were Expolanka, Commercial Leasing, Browns Investments, Vallibel One and LOLC Development Finance. YTD as of 2 September, Expolanka had gained by 526%, LOLC by 352%, Browns Investments by 167%, Commercial Leasing by 434% and Vallibel One by 148% and LOLC Development Finance by 867%. 

Asia Securities said the indices declined throughout the trading session as investors cashed in profits on heavyweight counters for the second straight day. 

“Following a 59-point gap down opening, the ASPI formed a wave pattern in early trading hours however, declined further mainly weighed by losses in EXPO, which garnered sharp gains over the past few weeks,” Asia said. 

It also said turnover remained strong supported by retail and HNI buying in EXPO and BIL while local investors continued capitalizing on foreign selling in HHL.

Foreigners recorded a net outflow of Rs. 382.2 million while their participation remained flat at 8.6% of turnover (previous day 8.9%). Net foreign buying topped in EXPO at Rs. 5.4 million while net foreign selling topped in Hemas Holdings (Rs. 201 million).

First Capital said the bourse closed lower for the second straight session on the back of profit-taking, while recording an almost two-week low turnover. 

“First half of the trading session reflected a rollercoaster ride, with the index plunging by 124 points to reach an intraday low of 9,193 due to profit-taking in selected counters, followed by a steep uptrend towards mid-session. However, the trend could not be sustained as selling pressure gathered pace again and the market remained on a downward trajectory for the rest of the session,” First Capital said.

It said turnover was led by the Transportation sector, followed by Capital Goods and Food, Beverage and Tobacco sectors collectively accounting for a total contribution of 76%. 

NDB Securities said high net worth and institutional investor participation was noted in Sunshine Holdings. Mixed interest was observed in Expolanka Holdings, Hemas Holdings and LOLC Holdings, whilst retail interest was noted in SMB Leasing voting and non-voting and Browns Investments. 

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index lost 3.06%. The share price of Expolanka Holdings decreased by Rs. 5.75 (3.08%) to close at Rs. 181.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hemas Holdings), whilst the sector index decreased by 1.85%. The share price of Hemas Holdings moved up by Rs. 1.10 (1.54%) to close at Rs. 72.50.

Browns Investments, LOLC Holdings and Kotagala Plantations were also included amongst the top turnover contributors. The share price of Browns Investments lost Rs. 0.30 (2.65%) to close at Rs. 11. The share price of LOLC Holdings recorded a loss of Rs. 5.25 (0.85%) to close at Rs. 612.25. The share price of Kotagala Plantations declined by Rs. 2.10 (25.61%) to close at Rs. 6.10.