Feeble start for February at stock market

Wednesday, 2 February 2022 00:12 - - {{hitsCtrl.values.hits}}

The Colombo stock market began February on a feeble note with both indices down despite near Rs. 10 billion turnover.

The All Share Price Index lost over 87 points or 0.7% and the S&P SL20 dipped sharply by 1.35% or 59 points.

Turnover was Rs. 9.7 billion involving 400 million shares, highest in recent days.

Asia Securities said following a moderate gap-up of 79 points, the ASPI reversed course due to price declines in index-heavy counters and traded negative for the rest of the session to close with a loss. On similar lines, the more liquid S&P SL20 index also trended downwards on price declines in EXPO (-2.8%), LOLC (-1.9%), HAYL (-2.2%) and VONE (-2.2%).

“Moreover, the recovery momentum that was seen in the market in the previous session was dented by price declines in Softlogic group stocks CRL (-15.4%), AAIC (-15.8%), SHL (-4.5%) and SCAP (-4.1%),” Asia said.

However, turnover picked up sharply from its previous session levels led by SCAP (Rs. 1.6 billion) AAIC (Rs. 1.5 billion) and EXPO (Rs. 1.13 billion) The breadth of the market closed negative with 98 price gainers and 128 decliners.

Asia also said foreigners recorded a net outflow of Rs. 88 million while their participation declined to 1.2% of turnover (previous day 2.7%). Net foreign buying topped in JKH at Rs. 16 million and selling topped in EXPO at Rs. 37 million.

First Capital said the bourse slid back to the red zone after swaying in and out from red to green in recent trading sessions, despite recording a 1-week high turnover.

“The first half of the trading session reflected a rollercoaster ride, with the index surging by nearly 86 points to reach an intraday high of 13,096, followed by a gradual downfall towards mid-session. Index slid down further towards the latter part of the session, as investors continued to book profits on retail favourite counters such as EXPO, LOLC and AAIC while closing the day at 12,922,” First Capital said adding turnover was led by Insurance sector and Food, Beverage and Tobacco sector accounting for a joint contribution of 47%.

NDB Securities said high net worth and institutional investor participation was noted in Vallibel One, Softlogic Holdings and JAT Holdings. Mixed interest was observed in Softlogic Life Insurance, Expolanka Holdings and Lanka IOC, whilst retail interest was noted in Softlogic Capital, Renuka Agri Foods and Browns Investments.

The Insurance sector was the top contributor to the market turnover (due to Softlogic Life Insurance), whilst the sector index lost 2.55%. The share price of Softlogic Life Insurance lost Rs. 34.25 (15.77%) to close at Rs. 183. Food, Beverage and Tobacco sector was the second highest contributor to the market turnover whilst the sector index decreased by 1.44%.

Softlogic Capital, Expolanka Holdings, Softlogic Holdings and Lanka IOC were also included amongst the top turnover contributors. The share price of Softlogic Capital decreased by 80 cents (4.12%) to close at Rs. 18.60. The share price of Expolanka Holdings moved down by Rs. 10 (2.82%) to close at Rs. 345. The share price of Softlogic Holdings recorded a loss of Rs. 3.30 (4.50%) to close at Rs. 70.10. The share price of Lanka IOC appreciated by Rs. 10.80 (16.80%) to close at Rs. 75.10.