Rs. 272 b in value wiped off since last week and Rs. 349 b since January as investors turn bearish

The Colombo stock market suffered its biggest setback yesterday sinking to negative return year to date for the first time after heavy fall of the indices.

The All Share Price Index dipped by over 300 points or 2.43% and the S&P SL20 declined by 113 points or 2.7%. With yesterday›s fall ASPI reported a negative return of 1.18% year to date whilst S&P SL20 moved further down with a negative 4.27%. ASPI at one point dipped below the psychological 12,000-point mark but recovered to close just above.

Since last week, the market has lost Rs. 272 billion in value of which Rs. 163 billion was yesterday. Total market capitalisation eroded by Rs. 348.5 billion since the end of January to date.  

Turnover was Rs. 5.28 billion yesterday involving 207 million shares.

Asia Securities said the indices continued their downbeat momentum for a third consecutive session on with the ASPI dipping below the 12,100 level, its lowest close since 30 December 2021, dragged by price losses in LOLC (-5.8%), HAYL (-5.6%), EXPO (-2.8%), and BIL (-4.1%).

“The ASPI staged a short-lived upward movement during market open on price gains in index-heavy stocks and touched an intra-day high of 12,469 (+87 points) in the first hour of trading. The index reversed course thereupon on price declines in above-mentioned stocks and dipped 438 points to an intra-day low of 12,031 in the second half of the session. The index picked up 105 points at 12,140 during closing hours, but ended the session declining to 12,082,” Asia said.

It said turnover was led by EXPO (Rs. 686 million), AAIC (Rs. 540 million) and BIL (Rs. 372 million).

Asia also said foreigners recorded a net inflow of Rs. 27 million with TJL topping net foreign buying at Rs. 23.7 million and selling topped in COMB.N at Rs. 19.3 million.

First Capital said the bourse continued to remain in the red territory for the third consecutive day while recording a two and half week low turnover.

“Index started on an upbeat note and traded positively during the first hour of the session. Afterwards, the market began to take a reversal note and dropped down significantly while reaching an intraday low of 12,027. 

“Subsequently, the market recovered a few points from the intraday low yet closed lower at 12,082, losing 301 points. LOLC, HAYL and EXPO are the major contributors to drag the index down,” First Capital said, adding turnover was led by a joint contribution of 55% from Capital Goods, Diversified Financials and Insurance sectors

NDB Securities said high net worth and institutional investor participation was noted in Teejay Lanka, Softlogic Holdings and Dipped Products. 

Mixed interest was observed in Expolanka Holdings, Softlogic Life Insurance and Lanka Orix Finance whilst retail interest was noted in SMB Leasing non-voting, Browns Investments and Softlogic Capital.

The Capital Goods sector was the top contributor to the market turnover whilst the sector index lost 2.77%. Diversified Financials sector was the second highest contributor to the market turnover (due to Softlogic Capital and Lanka Orix Finance) whilst the sector index decreased by 4.96%. 

The share price of Softlogic Capital recorded a gain of 40 cents to close at Rs. 17.40. The share price of Lanka Orix Finance declined by Rs. 1.80 to close at Rs. 25.40.

Expolanka Holdings, Softlogic Life Insurance and Browns Investments were also included amongst the top turnover contributors. The share price of Expolanka Holdings decreased by Rs. 8.75 to close at Rs. 309. The share price of Softlogic Life Insurance gained Rs. 14.25 to close at Rs. 162.75. The share price of Browns Investments moved down by 60 cents to close at Rs. 14. 

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