Controversial high-flyer LOLC Dev. Finance’s dip drags ASPI down by 109 points

The Colombo stock market continued its bearish run with the benchmark index dipping sharply amidst low turnover. 

The All Share Price Index saw a 109 points or 1.4% drop, the sharpest in recent weeks, whilst S&P SL20 declined by 12 points or 0.4%. Turnover was Rs. 1.4 billion, involving 73.6 million shares.

The controversial LOLC Development Finance (NIFL) saw its first negative close in weeks, thereby impacting the dip in ASPI. NIFL closed at Rs. 524.50, down by 25% or Rs. 170.25. 

Around 15,475 shares changed hands via 578 trades for Rs. 8.8 million. 

Fourth largest market-cap NIFL’s dip contributed 91.5 points to ASPI’s slide, whilst related party LOLC chipped in with six points. 

First Capital said the Bourse continued to remain in the red zone for the third straight day while recording a one-and-half-week low index due to price depreciation in illiquid shares. 

“ASPI peaked within the first 10 minutes of trading at 7,862; however, drastically dropped and recovered over the next few minutes. Thereafter, the index gradually veered down for the rest of the session, closing at 7,729, losing 109 points, the biggest index drop since nine weeks,” First Capital added. 

It said turnover was led by the Banks sector followed by the Diversified Financials sector collectively accounting for a total contribution of 40%. Parcel trades accounted for 21% of the turnover. 

Asia Securities said the ASPI trended downwards throughout the session as a result of price declines in counters such as NIFL, LOLC and LFIN. Turnover declined from yesterday’s levels; however, it remained moderate, boosted by block trades in a range of counters. 

The Banks, Diversified Financials, Capital Goods and Food, Beverage and Tobacco sectors led activity, collectively accounting for 66.0% of turnover. 

Asia Securities said foreigners recorded a net outflow of Rs. 42.6 million while their participation remained flat at 3% of turnover (previous day 4.6%). Estimated net foreign buying topped in WIND.N at Rs. 4 million and net foreign selling topped in NDB at Rs. 14.7 million. 

NDB Securities said the ASPI closed in red as a result of price losses in counters such as LOLC Development Finance, LB Finance and LOLC Holdings.

It said high net worth and institutional investor participation was noted in Renuka Agri Foods, Hatton National Bank non-voting and Cargills. Mixed interest was observed in Royal Ceramics, DFCC Bank and Aitken Spence, whilst retail interest was noted in Industrial Asphalts, Browns Investments and Vallibel Power. 

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank nonvoting), whilst the sector index gained 0.26%. The share price of Hatton National Bank non-voting increased by Rs. 2.75 (2.56%) to close at Rs. 110.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Holdings), whilst the sector index decreased by 7.13%. The share price of LOLC Holdings declined by Rs. 6 (1.52%) to close at Rs. 388.50.

Royal Ceramics, Renuka Agri Foods and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Royal Ceramics lost Rs. 0.30 (0.85%) to close at Rs. 35. The share price of Renuka Agri Foods moved up by Rs. 0.10 (2.86%) to close at Rs. 3.60. The share price of Expolanka Holdings recorded a loss of Rs. 1 (2%) to close at Rs. 49.10.