Stock market remains negative

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

The All-Share Price Index lost 30.49 points or -0.40% and the S&P SL20 dipped by 31.48 points or -1.25%. Turnover however was healthy at Rs. 8.2 billion involving 73.9 million shares.

Asia Securities said Transportation, Capital Goods, Food, Beverage and Tobacco and Energy sectors led activity, collectively accounting for 77.2% of turnover. 

Foreigners recorded a net inflow of Rs. 147.9 million, while their participation increased to 12.0% of turnover (previous day 4.2%). 

Net foreign buying topped in JKH.N at Rs. 101.3 million, whilst net foreign selling topped in RCL.N at Rs. 15.5 million. Only one crossing recorded in MELSN (Rs. 29.6 million) accounted for 3.6% of turnover. Market P/E was 6.29.

“Overall 50 counters closed higher, while 120 settled with losses,” Asia Securities said.

First Capital Holdings said market closed lower and remained in the red zone for the second day while recording a turnover at a one-week low as previously built-up positive sentiment was eroded amidst a lingering political crisis. 

“Index opened on a positive note, but failed to hold and scaled lower as the day progressed since investors prefer to stay away from the highly volatile market and adopt a cautious stance. With the rising selling pressure, index closed for the day at 7,568, losing 30 points,” it added.

Rs. 8.2 billion turnover was led by Transportation and Capital Goods sectors, accounting for a joint contribution of 51%. 

“Foreign investors remained net buyers, while recording high participation,” First Capital said.

NDB Securities said indices closed in red as a result of price losses in counters such as Expolanka Holdings, Royal Ceramics and LOLC Holdings with the turnover crossing Rs. 8.22 billion. 

“High net worth and institutional investor participation was noted in Melstacorp. Mixed interest was observed in Expolanka Holdings, Lanka IOC and John Keells Holdings, whilst retail interest was noted in SMB Leasing voting and non-voting, Browns Investments and LOLC Finance,” it added. 

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index lost 3.48%. The share price of Expolanka Holdings decreased by Rs. 5.75 (3.49%) to close at Rs. 159.00.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Royal Ceramics), whilst the sector index increased by 0.77%. The share price of John Keells Holdings moved up by Rs. 5.25 (4.24%) to close at Rs. 129.00. The share price of Royal Ceramics recorded a loss of Rs. 2.20 (7.21%) to close at Rs. 28.30.

Lanka IOC and Melstacorp were also included amongst the top turnover contributors. The share price of Lanka IOC gained Rs. 0.80 (2.40%) to close at Rs. 34.10. The share price of Melstacorp appreciated by Rs. 0.10 (0.27%) to close at Rs. 37.00.