Stock market lacklustre amidst holiday mood

The Colombo stock market was lacklustre yesterday, a special public holiday ahead of today’s Poson national holiday.

Turnover was only Rs. 777 million involving 43 million shares. Both indices dipped with the active S&P SL20 down by 0.6% and the benchmark ASPI lower by 0.13%.

Asia Securities said indices closed lower amid subdued turnover as investors remained on the sidelines, maintaining an overall risk-averse stance due to the prevailing macroeconomic conditions. 

Turnover was recorded at a one-year low (excluding sessions that saw circuit breakers and trade halts), led by LIOC (Rs. 117 million), BIL (Rs. 112 million), and EXPO (Rs. 112 million).

Among the actively trading stocks, EXPO (-3.5%), RCL (-3.0%), LOLC (-1.7%), and LOFC (-2.5%) settled with losses while BIL (+1.1%), HAYL (+0.9%), and JKH (+0.2%) ended in green.

The overall breadth of the market closed negative with 80 price gainers and 91 decliners. Asia also said foreigners recorded a net outflow of Rs. 6.1 million while their participation remained flat at 1.4% of turnover (previous day 2.0%). Net foreign buying topped in LALU at Rs. 1.6 million and selling topped in LWL at Rs. 4.6 million.

First Capital said after three consecutive days in green, ASPI closed the day in red, down marginally, recording a near one and a half-month low turnover, as investors chose to stay side-lined seeking more clarity on the economic front.

“Index opened on an upbeat note yet regressed to red afterwards with profit taking on selected stocks. Subsequently, the index see-sawed from green to red with massive volatility before closing for the day at 7,889 losing 10 points,” First Capital added.  

It said Expolanka Holdings was the biggest drag on the index, as news of a plunge in freight rates by 20.8% YTD, added woes to the already depressed share performance seen during the past few days. Turnover was led by Capital Goods and Food, Beverage and Tobacco sectors accounting for a joint contribution of 43%.

NDB Securities said high net worth and institutional investor participation was noted in Lanka Walltiles and Hayleys. Mixed interest was observed in Lanka IOC, Expolanka Holdings and Royal Ceramics whilst retail interest was noted in Browns Investments, LOLC Finance and SMB Leasing nonvoting.

The Capital Goods sector was the top contributor to the market turnover (due to Lanka Walltiles and Royal Ceramics) whilst the sector index edged up by 0.04%. The share price of Lanka Walltiles recorded a gain of Rs. 3.40 (6.07%) to close at Rs. 59.40. The share price of Royal Ceramics declined by 90 cents (3.02%) to close at Rs. 28.90.

Food, Beverage and Tobacco sector was the second-highest contributor to the market turnover (due to Browns Investments) whilst the sector index edged up by 0.03%. The share price of Browns Investments gained 10 cents to Rs. 9.20.

Lanka IOC and Expolanka Holdings were also included among the top turnover contributors. The share price of Lanka IOC increased by 90 cents (1.28%) to close at Rs. 71.40. The share price of Expolanka Holdings moved down by Rs. 6.75 (3.52%) to close at Rs. 185.