Bourse begins new week with over 2% dip; foreigners turn net buyers

The Colombo stock market began a fresh week on a negative note with indices dipping by over 2% amidst moderate turnover as investor sentiments continue to be bearish.

The All Share Price Index declined by 2.5% and the S&P SL20 was down by 2.75%. Turnover was Rs. 3.5 billion involving 103 million shares.

Asia Securities said the indices moved downwards as retail and HNI investors maintained a more cautious stance on concerns over the surge in oil prices due to the ongoing Russia-Ukraine conflict and prevailing macro-economic issues in the country. 

“Media reports about the United States and its allies considering a possible ban of Russian oil imports added more pressure in the global oil market, pushing Brent up to $ 139.13 and WTI to $ 130.50, their highest levels since 2008,” Asia said. 

As a result, investor sentiment for front-line stocks in the market turned downbeat during the session. Following an 81-point gap-up opening to 11,324, the ASPI trended downwards and eventually slid into negative territory to close with loss of 283 points (-2.5%) dragged by price declines in CLC (-11.0%), BIL (-5.1%), EXPO (-3.5%), LOLC (-4.3%), LOFC (-10.0%), HAYL (-4.2%), SCAP (-5.7%), and RCL (-4.7%). 

Turnover was led by CLC (Rs. 798 million) and EXPO (Rs. 393 million). 

Asia also said foreigners ended on the buying side for the third consecutive session with a net inflow of Rs. 150 million, boosted by net buying in JKH (Rs. 141 million) and DIAL (Rs. 58 million). Overall, 25 stocks ended with gains while 186 settled with losses.

First Capital said the Bourse fell lower and closed in the red territory as investors panicked over rising uncertainties. 

“The Index started on an upbeat note but failed to sustain the position as retailers preferred to stay away from the highly volatile market. With that, the index displayed a continuous downfall below 11,000 level and closed lower at 10,960, losing 283 points,” First Capital said, adding turnover was led by Diversified Financials and Capital Goods sectors accounting for a joint contribution of 63%. 

NDB Securities said high net worth and institutional investor participation was noted in Access Engineering, John Keells Holdings and Renuka Holdings. 

Mixed interest was observed in Expolanka Holdings, LOLC Holdings and Sinhaputhra Finance whilst retail interest was noted in Commercial Leasing & Finance, Browns Investments and Lanka Orix Finance. 

Diversified Financials sector was the top contributor to the market turnover (due to Commercial Leasing & Finance, LOLC Holdings and Lanka Orix Finance) whilst the sector index fell by 4.48%. The share price of Commercial Leasing & Finance decreased by Rs. 5.30 (10.95%) to close at Rs. 43.10. The share price of LOLC Holdings moved down by Rs. 41.50 (4.31%) to close at Rs. 921.75. The share price of Lanka Orix Finance recorded a loss of Rs. 2.20 (10%) to close at Rs. 19.80.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index edged down by 2.32%. The share price of John Keells Holdings declined by Rs. 1.25 (0.86%) to close at Rs. 144.50.

Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 9.75 (3.47%) to close at Rs. 271.

Separately, United Motors Lanka announced an interim dividend of Rs. 1.50 per share.