Stock market dips sharply over macro concerns

The Colombo stock market dipped sharply yesterday over macro concerns though turnover improved.

The active S&P SL20 Index was down by 2.6% and the benchmark ASPI was lower by 1.5%. Turnover amounted to Rs. 1.12 billion involving 50.6 million shares.

Asia Securities said the indices witnessed another downbeat session largely due to price declines recorded by S&P SL20 stocks EXPO (-5.3%), LOFC (-5.1%), LOLC (-3.2%), HAYL (-3.4%), VONE (-6.2%), and SAMP (-3.2%). However, activity improved slightly with turnover coming in at Rs. 1,121 million (previous session Rs. 777 million), led by EXPO (Rs. 205 million), BIL (Rs. 152 million), and LIOC (Rs. 78 million).

Asia said the ASPI commenced the session with a sharp gap-down of 130 points at 7,759 and hovered in the range of 7,750-7,800 throughout the session while the S&P SL20 index moved in the narrow range of 2,480-2,500 following a 66-point gap-down opening. Eventually, the ASPI ended trading with a loss of 117 points (-1.5%) and the S&P SL20 index closed with a loss of 61 points (-2.4%). 

The breadth of the market remained negative with 52 price gainers and 114 decliners.

Asia also said foreigners recorded a net outflow of Rs. 5.8 million while their participation increased to 14.1% of turnover (previous day 1.4%). Net foreign buying topped in RFL at Rs. 9.9 million and selling topped in MELS at Rs. 5.1 million.

Frist Capital said the Bourse closed in the red territory for the second consecutive day with intensified selling pressure owing to the reiteration by the Prime Minister on the nearing three weeks being strenuous as the country is toiling to get adequate stocks of fuel and gas.

The Index dived steeply into red as the market opened with significant selling pressure. Subsequently, the index moved with slight volatility throughout the session but failed to recoup losses as it closed for the day at 7,772 losing 117 points while the S&P SL 20 index too followed a similar trend. However, turnover improved with a joint contribution of 38% from the Food, Beverage and Tobacco sector and Transportation sector.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, CT Holdings, and John Keells Holdings. Mixed interest was observed in Expolanka Holdings, Lanka IOC and LOLC Holdings whilst retail interest was noted in Browns Investments, Muller & Phipps and LOLC Finance.

It said the Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments) whilst the sector index lost 1%. The share price of Browns Investments lost 20 cents to close at Rs. 9.

Transportation sector was the second-highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index decreased by 5.26%. The share price of Expolanka Holdings decreased by Rs. 9.75 (5.27%) to close at Rs. 175.25.

Lanka IOC, Hatton National Bank and LOLC Holdings were also included among the top turnover contributors. The share price of Lanka IOC moved down by Rs. 1.80 (2.52%) to close at Rs. 69.60. The share price of Hatton National Bank recorded a loss of 80 cents to close at Rs. 77. The share price of LOLC Holdings declined by Rs. 15.75 (3.18%) to close at Rs. 479.25.