Stock market remains negative

The Colombo stock market remained negative for the second consecutive day dampening investor hopes of a turnaround.

The All Share Price Index lost 37 points or 0.3% and the S&P SL20 dipped by 18 points or 0.4%. Turnover however was healthy at Rs. 8 billion involving 357.5 million shares.

Asia Securities said rebounding strongly, the ASPI pared its early losses after witnessing a volatile opening  as investors re-entered into heavyweight stocks at relatively lower levels capitalising on recent price declines due to profit-taking. 

LOFC recorded 29 crossings for the day amounting to a turnover of Rs. 896million. This was largely absorbed by local HNI investors while robust retail and HNI buying continued in BIL and EXPO. Retail momentum buying picked up again in SUN following yesterday’s plunge. 

Market turnover came in at Rs. 7,939 million led by LOFC (Rs. 1,295 million), EXPO (Rs. 727 million), and BIL (Rs. 683 million). The ASPI commenced the session slipping below the 13,000 mark with a sharp gap down of 180 points and upsurged 200 points in the next few minutes.

“The index witnessed another downturn shedding 198 points, however regained ground subsequently and reclaimed the 13,000 level on the back of price gains in LOFC, AAIC and SCAP coupled with steady recoveries shown by BIL, EXPO and HAYL in the second half of the session. Overall, 84 counters closed higher while 137 settled with losses,” Asia said.

First Capital said the bourse ended up in the red zone continuing the profit taking from the previous session especially in retail favourite counters.

“The Index witnessed massive volatility shortly into the market opening as it see-sawed from the red to green zone alternatively as investors gave away to a selling spree. However the index moved on a gradual recovery but failed to uphold the momentum as it declined during the latter part of the session closing for the day at 13,080 losing 37 points but managed to remain above the 13,000 level,” First Capital added.

It said turnover was led by a joint contribution of 49% from the Diversified Financials sector and Food, Beverage and Tobacco sector.

NDB Securities said high net worth and institutional investor participation was noted in Lanka Orix Finance, John Keells Holdings and Hayleys. Mixed interest was observed in Expolanka Holdings, Sunshine Holdings and Vallibel One, whilst retail interest was noted in SMB Leasing nonvoting, Browns Investments and Softlogic Capital.

It said the Diversified Financials sector was the top contributor to the market turnover (due to Lanka Orix Finance), whilst the sector index gained 0.22%. The share price of Lanka Orix Finance increased by Rs. 1.40 (4.98%) to close at Rs. 29.50.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments and Sunshine Holdings), whilst the sector index decreased by 0.40%. The share price of Browns Investments moved down by 20 cents (1.15%) to close at Rs. 17.20. 

The share price of Sunshine Holdings recorded a gain of Rs. 4.30 (6.70%) to close at Rs. 68.50. Expolanka Holdings and Vallibel One were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 5.50 (1.42%) to close at Rs. 381.75. The share price of Vallibel One appreciated by Rs. 2.90 (3.32%) to close at Rs. 90.20.