Stock market remains bearish; closes week on the up

The Colombo stock market remained bearish yesterday though it finished the week on the up as investor sentiment was dampened by the latest attack on anti-Government protesters. 

The active S&P SL20 index was down by 0.6% and the ASPI was down by 0.2% yesterday. For the week, ASPI and the S&P SL20 gained 3.4% and 2.6% respectively.

Yesterday’s turnover was only Rs. 866 million down from the week’s daily average of Rs. 1.2 billion.

Asia Securities said the ASPI opened trading with a gap-down of 23 points and touched an intra-day low of 7,703 (-33 points) at market open. Following this, the index rebounded to a high of 7,767 (+31 points) in the first hour of the session. 

However, the index witnessed another decline in the second half and eventually settled at 7,722. Despite the decline in the index, the breadth of the market ended positive with 101 price gainers and 80 decliners.

It said turnover was supported by LIOC (Rs. 174 million), SUN (Rs. 169 million), and BIL (Rs. 153 million). “Overall retail and HNI activity on the Exchange were at lower levels as investors took to the sidelines ahead of the weekend while awaiting directional cues in the market following the appointment of the new Cabinet,” Asia added. 

It also said foreigners recorded a net inflow of Rs. 123.2 million while their participation increased to 9.4% of turnover (previous day 1.6%). Net foreign buying topped in SUN at Rs. 135.4 million and selling topped in HNB.N at Rs. 15 million.

First Capital said the bourse slid to the red zone after continuous gains over the week as investors set off on taking profits while adopting a wait and see approach. As the market opened index dived to an intraday low of 7,701 yet escalated sharply thereafter. 

However, by mid-day the index came plunging down with massive volatility as a selling spree emerged and closed for the day at 7,722 losing 15 points. Turnover was driven by a 41% contribution from the Food, Beverage and Tobacco sector followed by a 20% contribution from the Energy sector. 

NDB Securities said ASPI closed in the red as a result of price losses in counters such as Commercial Bank, Hatton National Bank and Browns Investments.

It said high net worth and institutional investor participation was noted in Sunshine Holdings. Mixed interest was observed in Expolanka Holdings, Lanka IOC and Hayleys whilst retail interest was noted in Browns Investments, Waskaduwa Beach Resort and LOLC Finance. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Sunshine Holdings and Browns Investments) whilst the sector index lost 0.12%.

The share price of Sunshine Holdings gained Rs. 2 (5.88%) to close at Rs. 36. The share price of Browns Investments moved down by 20 cents to Rs. 7.80.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index increased by 2.70%. The share price of Lanka IOC increased by Rs. 2.90 (3.60%) to close at Rs. 83.40.

Expolanka Holdings and Hayleys were also included among the top turnover contributors. The share price of Expolanka Holdings recorded a loss of Rs. 2.25 (1.25%) to close at Rs. 177.50. The share price of Hayleys appreciated by 80 cents to close at Rs. 73.80.