Stock market loses Rs. 145 b in value since Budget

• Active S&P SL20 Index YTD dip crosses 40% mark; shy of 335 points to hit 2022 lowest
• Continuous net foreign inflow the only silver lining

The negative run at the Colombo Bourse continued for the fourth session with the market’s value losing Rs. 145 billion since 2023 Budget-day whilst the active S&P SL20 Index YTD dip has crossed the 40% mark. Yesterday’s dip in indices were marginal in comparison to Wednesday but analysts said investor sentiment remained lacklustre. 

Year to date the ASPI is down 34.28% as opposed to 31% on Friday and the S&P SL20 is down 41.88% as against 39% last week. 

The latter’s lowest level in 2022 was 2,125.96 about 335 points behind yesterday’s close.

Analysts opined mixed sentiments over 2023 Budget as well as sharp hike in income tax have dampened investor sentiment. 

The Colombo stock market’s only silver lining is continuous net foreign inflow with yesterday’s figure of Rs. 57 million taking YTD value to Rs. 17.4 billion.

Asia Securities said the market closed in the red for a fourth session while turnover declined. The ASPI opened with a gap up of 31 points and reached a high of 8,153 amid some volatility. Subsequently, the index trended downwards from the second hour of trading to close at 8,035. CINS.N (-22 points) led the decline in the ASPI while COMB (+8 points) was the highest positive contributor. Turnover was led by SLTL which recorded a sharp 8.3% gain during the session. Crossings contributed to activity in JKH, while LIOC and EXPO were also among the top contributors to turnover. Market breadth was negative with 63 counters up and 116 counters closing down.

First Capital said the bourse regressed in red for the fourth straight day as selling pressure increased on heavyweights bringing the ASPI down. 

Index moved on an uptrend as the market commenced with investor interest spanning on SLTL amidst potential SOE restructuring. However, by mid-day the index tumbled as investors resorted to sell predominantly on heavy weights such as LOLC and JKH before closing for the day at 8,035, losing 52 points. 

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Ceylinco Insurance, LOLC Holdings and John Keells Holdings.

It said high net worth and institutional investor participation was noted in John Keells Holdings and Hunas Falls Hotels. Mixed interest was observed in Sri Lanka Telecom, Lanka IOC and Expolanka Holdings whilst retail interest was noted in Browns Investments, Serendib Hotels (voting and nonvoting) and Prime Lands Residencies. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 0.70%. The share price of John Keells Holdings lost Rs.

1.50 (1.07%) to close at Rs. 139.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index decreased by 0.89%. The share price of Browns Investments declined by 10 cents to close at Rs. 5.

Sri Lanka Telecom, Lanka IOC and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Sri Lanka Telecom increased by Rs. 5.80 (8.25%) to close at Rs. 76.10. The share price of Lanka IOC moved up by Rs. 4.75 (2.81%) to close at Rs. 173.50. The share price of Expolanka Holdings recorded a gain of 25 cents to close at Rs. 133.