Stock market indices suffer over 7% dip

• ASPI dips below psychological level barrier of 8,000 points
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The Colombo stock market suffered an over 7% dip this week as investor sentiment remained beleaguered on account of macro issues.

The benchmark All Share Price Index (ASPI) declined by 7.1% and the active S&P SL20 fell sharper by 7.7% during the week. In the previous week the dip was negligible at 0.8% and 0.2% respectively.

Daily turnover averaged at Rs. 1.3 billion marginally higher than Rs. 1.2 billion last week.

Yesterday S&P SL20 fell by 3.2% and the ASPI by 2.7%. Turnover improved to Rs. 1.4 billion involving 49.4 million shares.

Asia Securities said the market closed in the red for a fifth session, with the ASPI nearing the 7,800 level. Following market open, the index trended downwards throughout the session to close at 7,818. EXPO (-22 points) led the decline in the ASPI, followed by RICH (-13 points), VONE (-11 points) and LIOC (-11 points). 

Turnover benefited from significant contribution from block trades executed in CDB and RCL (22.7% of turnover). EXPO, LIOC and SLTL were also among the top contributors to market activity. Market breadth was negative with 23 counters gaining and 174 closing down.

Asia said net foreign inflow was Rs. 94.9 million. Net foreign buying topped in EXPO at Rs. 32.3 million and selling topped in PLC at Rs. 0.9 million.

First Capital said the ASPI broke the psychological level barrier of 8,000, triggering margin calls amidst the inflating selling pressure. Index plunged deeply into the red zone and continued to tumble while falling to a 3 ½ -month low of 7,818, losing 217 points. 

Investors were compelled to set on a selling spree on EXPO which traded at its lowest market price since Apr 2022, while LIOC dragged down further amidst the fall in global oil prices. Through off-board, 0.4% stake of RCL (400.0 million shares) changed hands at Rs. 28.0 per share while 1.5% stake of CDB.N (1.1 million shares) was traded at Rs. 200 per share.

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Expolanka Holdings, Richard Pieris & Company and Vallibel One.

It said high net worth and institutional investor participation was noted in Royal Ceramic and Citizens Development Business Finance. Mixed interest was observed in Expolanka Holdings and Lanka IOC whilst retail interest was noted in Sri Lanka Telecom and Browns Investments. 

Foreign participation in the market activity remained at subdued levels with foreigners closing as net buyers.

The Capital Goods sector was the top contributor to the market turnover (due to Royal Ceramics) whilst the sector index lost 2.64%. The share price of Royal Ceramics moved down by Rs. 1.10 (3.79%) to close at Rs. 27.90.

Diversified Financials sector was the second highest contributor to the market turnover (due to Citizens Development Business Finance) whilst the sector index decreased by 2.03%. The share price of Citizens Development Business Finance gained Rs. 24.50 (13.96%) to close at Rs. 200.

Expolanka Holdings, Lanka IOC and Sri Lanka Telecom were also included among the top turnover contributors. 

The share price of Expolanka Holdings decreased by Rs. 10.25 (7.71%) to close at Rs.

122.75. The share price of Lanka IOC recorded a loss of Rs. 9.25 (5.33%) to close at Rs. 164.25. The share price of Sri Lanka Telecom declined by Rs. 5.60 (7.36%) to close at Rs. 70.50.