Stock market turns bearish

The Colombo stock market turned bearish yesterday after two consecutive days of gain whilst turnover continued to remain above Rs. 1 billion.

Acuity Stockbrokers said the Bourse ended on a negative note as the ASPI decreased by 0.24% or 12.26 points to close at 5,069.52 points, while the S&P SL20 Index also decreased by 0.77% or 17.02 points to close at 2,195.68.

Turnover decreased by 41.3% relative to Tuesday to Rs. 1.0 billion while crossings for the day amounted to 25.5% of the day’s total turnover. 

Foreign investors recorded a net outflow of Rs. 0.21 billion over the day compared to a net outflow of Rs. 0.24 billion on Tuesday.

First Capital said reversing the trend witnessed for last two trading sessions, bourse ended the day in the negative territory while capital goods sector dominated the turnover for the second consecutive day with 43% contribution, mainly led by selling in JKH. 

“The index recorded a downtrend within the first 30 minutes of trading and thereafter recorded a slight increase and recorded intraday high of 5,085. Thereafter market experienced a volatile movement and hit intra day’s low of 5,070 while closing at same levels losing 10 points during the day,” First Capital added. 

It said parcel trades occurred in JKH, COMB and PAP contributed 25% to the turnover. Foreign investors continued to be net sellers recording moderate participation. 

NDB Securities said indices closed in red as a result of price losses in counters such as John Keells Holdings, Dialog Axiata and Sampath Bank.

High net worth and institutional investor participation was noted in John Keells Holdings, Panasian Power and Commercial Bank. Mixed interest was observed in Hatton National Bank nonvoting and Tokyo Cement Company whilst retail interest was noted in People’s Leasing & Finance and Access Engineering. 

Furthermore, foreigners closed as net sellers mainly due to foreign selling in John Keells Holdings and Commercial Bank.

Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Hemas Holdings) whilst the sector index lost 1.21%. The share price of John Keells Holdings decreased by Rs. 1.90 (1.65%) closing at Rs. 113.00 whilst foreign holdings decreased by 977,083 shares. The share price of Hemas Holdings declined by Rs. 0.40 (0.67%) to close at Rs. 59.60.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank and Hatton National Bank nonvoting) whilst the sector index decreased by 0.72%. The share price of Commercial Bank moved up by Rs. 0.10 (0.13%) closing at Rs. 76.60 whilst foreign holdings decreased by 590,775 shares. The share price of Hatton National Bank nonvoting recorded a loss of Rs. 1.30 (1.50%) to close at Rs. 85.20.

Panasian Power was also included amongst the top turnover contributors. The share price of Panasian Power gained Rs. 0.10 (3.23%) to close at Rs. 3.20.