Colombo stock market suffers another week of losses

The Colombo stock market closed another week with losses as investors took a bearish view ahead of the mini-Budget next week.

The benchmark ASPI lost 182.36 points (2.03%) during the week while the S&P SL20 lost 100.20 points (3.38%). Daily turnover averaged Rs. 3 billion declining from Rs. 4.17 billion last week. In the previous week the ASPI dipped by 0.5% and the S&P by 3.5%. It was the first weekly decline in over a month.

Asia Securities said the indices posted marginal losses, while activity remained at more moderate levels as investors await next week’s budget reading. The ASPI opened lower and trended downwards to reach 8,683 before gradually recovering to a peak of 8,846. 

Following this, the index stabilised in the range of 8,788-8,820 over the second half of the session. EXPO and LIOC led activity, collectively accounting for 40% of turnover. Notably, foreign participation picked up during the session on the back of net foreign buying in EXPO amounting to Rs. 261 million.

During the session, EXPO (+9 points) and HHL (+6 points) were the top positive contributors to the ASPI while LOLC (-9 points), HAYL (-7 points) and RCL (-6 points) led the decline in the index. Market breadth was negative with 83 counters posting gains and 112 counters declining.

Asia also said net foreign inflow was Rs. 405.4 million while foreign participation increased to 12% of turnover (previous day 4.3%). Net foreign buying topped in EXPO at Rs. 261.1 million and selling topped in CCS at Rs. 15 million.

First Capital said the bourse closed marginally in red and recorded losses for the fourth consecutive day as selling pressure emerged owing to margin calls while some investors took a side-lined approach with anticipations on the upcoming interim budget. Index sharply hit the skids as soon as the market opened as selling pressure took charge.

Shortly, index recouped while some activity was witnessed on plantation and hotels and some conglomerates before closing for the day at 8,793 on a marginal loss of 35 points. Turnover remained closely stable with the Transportation sector and Food, Beverage and Tobacco sectors dominating the turnover by a joint contribution of 43%.

NDB Securities said high net worth and institutional investor participation was noted in Expolanka Holdings, Citizens Development Business Finance and John Keells Holdings. Mixed interest was observed in Lanka IOC, Hayleys and Lankem Developments whilst retail interest was noted in Browns Investments, LOLC Finance and SMB Leasing.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 2.24%. The share price of Expolanka Holdings increased by Rs. 4.75 (2.24%) to close at Rs. 216.75.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover whilst the sector index decreased by 0.58%.

Lanka IOC, Citizens Development Business Finance, Hayleys and John Keells Holdings were also included among the top turnover contributors. The share price of Lanka IOC lost Rs. 2.75 (1.61%) to close at Rs. 167.75. 

The share price of Citizens Development Business Finance moved up by Rs. 13. (6.84%) to close at Rs. 203. The share price of Hayleys recorded a loss of Rs. 2.70 (2.69%) to close at Rs. 97.80. The share price of John Keells Holdings appreciated by Rs. 1 (0.81%) to close at Rs. 124.

Separately Mahaweli Coconut Plantations and Raigam Wayamba Salterns announced their final dividends of Rs. 1.50 and Rs. 0.15 per share respectively.