Stock market’s bull run loses steam

• Opens October on mixed note but both indices end week higher by 5%
• CBSL Road Map fails to keep investor sentiment intact; CSE sees small net foreign inflow of Rs. 7 m

The Colombo stock market yesterday saw an end to the bull run akin to taking a breather, and closed negative with the Central Bank's short-term Road Map failing to keep recent investor sentiment intact.

The All Share Price Index closed over 17 points down or 0.19%. However, the S&PSL20 closed on the up marginally by nearly five points or 0.13%. Turnover fell below this week's and recent average to Rs. 5.28 billion. A positive feature yesterday, however, was a small yet welcome net foreign buying worth Rs. 7 million.

First Capital said the bourse slid back to the red zone, breaking the previous seven-day uptrend on the first day of the new month while recording a one-week low turnover.

“The index started with sizeable volatility during the first half-hour of trading hitting an intraday all-time high of 9,524. Afterwards, the market encountered a continuous downfall as investors infused selling pressure to profit-taking in selected counters and ended up closing at 9,442,” First Capital added.

It said turnover was led by the Transportation sector, followed by the Capital Goods sector, accounting for a joint contribution of 38%.

Asia Securities also said following seven consecutive sessions of strong gains, the ASPI closed marginally lower dragged by price losses in CLC while the more liquid S&P SL20 Index remained in the positive territory, supported by price increases in TJL, MELS, and JKH.

It said turnover remained at stronger levels on the back of healthy buying in selected heavyweight stocks. Following an initial surge to 9,523 (+63 points) level, the ASPI began moving lower and eventually closed in red as a result of profit-taking by investors. However, the breadth of the market continued positive as 97 stocks closed higher while 93 stocks settled with price losses, Asia added.

It said foreigners recorded a net inflow of Rs. 6.8 million while their participation declined to 0.5% of turnover (previous day 4.5%). Net foreign buying topped in EXPO at Rs. 7 million and net selling topped in DIST at Rs. 4.9 million. Crossings accounted for 10.6% of turnover with eight crossings recorded in TJLN (Rs. 376.8 million), and one crossing each in EXPON (Rs. 121.2 million), SPEN (Rs. 41.8 million) and HNBN (Rs. 21.3 million).

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Commercial Leasing and Finance, Expolanka Holdings, and LOLC Development Finance.

It said high net worth and institutional investor participation was noted in Aitken Spence, Teejay Lanka, and Expolanka Holdings. Mixed interest was observed in John Keells Holdings and Dipped Products whilst retail interest was noted in Browns Investments, Anilana Hotels and Properties, and SMB Leasing non-voting.

During the week, the ASPI and the S&P SL20 gained 5.62% and 5.73%, respectively, whilst recording an average daily turnover of Rs. 6.32 billion.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index lost 0.50%. The share price of Expolanka Holdings decreased by one Rupee (0.50%) to close at Rs. 198.25.

The Capital Goods sector was the second-highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index edged up by 0.01%. The share price of John Keells Holdings moved up by 75 cents (0.50%) to close at Rs. 150.50.

Teejay Lanka, EML Consultants and Browns Investments were also included amongst the top turnover contributors. The share price of Teejay Lanka gained Rs. 1.10 (2.50%) to close at Rs. 45.10. The share price of EML Consultants Ltd. recorded a loss of Rs. 4.20 (23.20%) to close at Rs. 13.90. The share price of Browns Investments appreciated by 10 cents (0.98%) to close at Rs. 10.30.

Separately The Lanka Hospitals Corporation announced an interim dividend of one rupee per share.