Colombo Bourse turns bearish amidst lacklustre turnover

The Colombo stock market turned bearish amidst lacklustre activity and foreign outflow.

Acuity Stockbrokers said the Bourse ended on a negative note as the ASPI decreased by 0.61% or 30.42 points to close at 4,916.69 points, while the S&P SL20 Index also decreased by 0.83% or 17.56 points to close at 2,095.95.

Turnover decreased by 75.0% relative to Wednesday to amount to Rs. 0.46 billion while the turnover of HNB accounted for 20.1% of the day’s total turnover. Foreign Investors meanwhile, recorded a net outflow of Rs. 0.03 billion over the day compared to a net outflow of Rs. 0.21 billion recorded yesterday. First Capital said uncertainty in the severity of the COVID-19 second wave continued to stem on the investors, as most retailers were on the sidelines, plunging turnover to a two month low.  “ASPI was dragged down to its one month low due to the dip in prices of CINS & CCS. Index experienced selling pressure during the early hours of trading and hit its intraday low of 4,892, thereafter recovered during mid-day on the back of buying interest in LOLC before closing at 4,917, losing 30 points,” it added. First Capital said market recorded low foreign participation dominated by the selling side resulting in a net outflow.

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Ceylinco Insurance, Ceylon Cold Stores and John Keells Holdings.

High net worth and institutional investor participation was noted in Hatton National Bank, John Keells Holdings and Commercial Bank. Mixed interest was observed in Sampath Bank and Seylan Bank, whilst retail interest was noted in LOLC Holdings, Hayleys Fabric and First Capital Holdings.  Furthermore, foreigners closed as net sellers mainly due to foreign selling in Hatton National Bank.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Commercial Bank and Seylan Bank) whilst the sector index lost 0.91%. The share price of Hatton National Bank decreased by Rs. 1.00 (0.95%) closing at Rs. 104.50 whilst foreign holdings decreased by 272,500 shares. The share price of Commercial Bank moved down by Rs. 0.50 (0.68%) to close at Rs. 72.60 while the share price of Seylan Bank declined by Rs. 1.80 (4.25%) to close at Rs. 40.60.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.87%. The share price of John Keells Holdings lost Rs. 1.00 (0.92%) to close at Rs. 107.50.

LOLC Holdings was also included amongst the top turnover contributors. The share price of LOLC Holdings recorded a loss of Rs. 1.00 (0.81%) to close at Rs. 122.80.