Stock market investor sentiment turns negative

The Colombo stock market yesterday lost the positive momentum enjoyed in the previous two sessions with indices dipping amidst low trading as investors remained besieged over the energy crisis in the country despite Presidential assurance of swift rectification.

The active SandPSL20 Index suffered a near 2% decline whilst the benchmark All Share Price Index declined by 1.5%. Turnover was Rs. 3 billion involving 132.8 million shares.

Asia Securities said following two sessions of healthy rebound, the indices closed lower dragged by price losses in EXPO (-2.9%), BIL (-4.0%), LOLC (-4.0%), CLC (-1.9%), LOFC (-2.5%) and VONE (-4.5%).

The ASPI commenced the session crossing the 11,600 level with a gap-up of 47 points and touched an intra-day high of 11,625 within the first few minutes of trading. However, the index subsequently witnessed a sharp decline of 283 points as retail and HNI investors resorted to booking quick profits in heavyweight stocks across sectors.

“After reaching an intra-day low of 11,342 in early trading, the ASPI gradually recovered momentum and remained in the range of 11,500-11,560 till mid-afternoon trade. However, the index again trended downwards during closing hours and eventually ended the session with a loss of 172 points at 11,406 Asia said.

It said turnover was led by EXPO (Rs. 610 million), BIL (Rs. 264 million) and CLC (Rs. 229 million). Overall market breadth ended negative with 69 gainers and 149 decliners.

Asia also said foreigners recorded a net outflow of Rs. 41 million while their participation declined to 2.4% of turnover (previous day 4.9%). Net foreign buying topped in CIC.N at Rs. 6 million and selling topped in SUN at Rs. 34 million.

First Capital said the Bourse ended trading in the red territory, as the market heated up causing ballooning selling pressure due to the rising global tension and uncertain economic conditions prevailing at the moment.

“The Index inched up in the beginning and displayed a straight fall afterwards while hitting an intraday low of 11,332. Eventually, market managed to recover earlier losses during the mid-day but failed to retain and traded negatively throughout the session while closing the day at 11,406, losing 172 points,” First Capital said adding turnover was led by Food, Beverage and Tobacco, Transportation and Diversified Financials sectors accounting for a joint contribution of 64%.

NDB Securities said high net worth and institutional investor participation was noted in Sunshine Holdings, LOLC Holdings and Watawala Plantations. Mixed interest was observed in Expolanka Holdings, Commercial Leasing and Finance and Lanka IOC, whilst retail interest was noted in SMB Leasing voting and nonvoting, Browns Investments and Industrial Asphalts.

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 1.40%. The share price of Browns Investments lost 50 cents (3.97%) to close at Rs 12.10. The share price of Sunshine Holdings appreciated by Rs 2 (4%) to close at Rs 52.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings), whilst the sector index lost 2.89%. The share price of Expolanka Holdings decreased by Rs 8.50 (2.87%) to close at Rs 287.25.

Commercial Leasing and Finance and Lanka IOC were also included amongst the top turnover contributors. The share price of Commercial Leasing and Finance moved down by 90 cents (1.88%) to close at Rs 47. The share price of Lanka IOC recorded a gain of Rs 7.40 (12.85%) to close at Rs 65.

Separately Lanka Walltiles and Softlogic Life Insurance announced their interim dividends of Rs 1.70 and Rs 2.80 per share respectively.