Stock market dips for the first time in new year

For the first time in the new year, the Colombo stock market turned bearish yesterday due to macro concerns as well as a degree of profit taking.

The All Share Price Index lost over 163 points, or 1.2%, and the S&P SL20 shed over 23 points, or 0.5%. Turnover however was healthy at Rs. 8.8 billion involving 362.6 million shares.

Asia Securities said the market commenced the week with a slowdown as the indices snapped their seven-day gaining streak due to a mix of profit-booking in heavyweights and pullback in stocks that recorded unwarranted gains over the last few weeks.

Turnover was led by activity in Browns Investments, Sunshine Holdings, Expo and Vallibel One. On the sectoral front, the banking sector stocks saw renewed retail and HNI buying interest. In particular, Amana Bank surged nearly 20% while SAMP and COMB also ended with decent gains at 4.9% and 3.9% respectively.

“The ASPI opened trading surpassing the 13,400 level on the back of a 165-point gap up, however, reversed all of its gains and slipped into negative as the session progressed while the S&P SL20 index edged lower due to price declines in LOLC, EXPO, and VONE. The breadth of the market turned negative with 74 price gainers and 167 decliners,” Asia said.

It said foreigners recorded a net outflow of Rs. 17 million while their participation declined to 2.4% of turnover (Friday 5.8%). Net foreign buying topped in EXPO at Rs. 106.3 million while net selling topped in SHL at Rs. 84.6 million.

First Capital said the bourse saw a steep plunge into the red zone after eight consecutive days of gains, as the index recorded the largest intraday loss in five weeks.

“Within the first few minutes, the index continued to pursue a bull run while gaining more than 150 points. However, the winning momentum failed to continue as investors infused heavy selling pressure and profit-taking in selected counters, the market took a downturn and closed the day at 13,117, losing 164 points largely contributed by LOLC and EXPO counters,” First Capital added.

It said turnover was led by a joint contribution of 51% from the Food, Beverage and Tobacco sector and Capital Goods sector.

NDB Securities said high net worth and institutional investor participation was noted in LOLC Holdings, Lanka Orix Finance and Softlogic Holdings. Mixed interest was observed in Sunshine Holdings, Expolanka Holdings and Vallibel One, whilst retail interest was noted in Browns Investments, SMB Leasing non-voting and Amana Bank.

It said the Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments and Sunshine Holdings) whilst the sector index lost 1.17%. The share price of Browns Investments decreased by 80 cents (4.40%) to close at Rs. 17.40. The share price of Sunshine Holdings lost Rs. 5.30 (7.63%) to close at Rs. 64.20.

The Capital Goods sector was the second highest contributor to the market turnover (due to Vallibel One), whilst the sector index decreased by 1.61%. The share price of Vallibel One recorded a loss of Rs. 4.70 (5.11%) to close at Rs. 87.30.

Expolanka Holdings and LOLC Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved down by Rs. 7 (1.78%) to close at Rs. 387.25. The share price of LOLC Holdings declined by Rs. 54.75 (3.88%) to close at Rs. 1,355.25.