The midnight fuel hike dampened investor sentiment yesterday as the Colombo stock market closed on a negative note with below-average turnover. 

The All Share Price Index dipped by over 9 points, and the S&P SL20 declined by over 17 points. Turnover was Rs. 4 billion involving 181.4 million shares. Asia Securities said after opening the session with a downtick, the indices staged a gradual recovery yesterday as investors resorted to front-line stocks at relatively lower levels after remaining sideways on profit-taking in the past few sessions. 

Closing 69.6% higher from its issue price, hSenid Business Solutions Ltd. (HBS) recorded a strong session on its trading debut today and contributed significantly to turnover on buying extended by local investors. LIOC saw notable buying interest from investors during the session, triggered by the Government’s decision to increase all fuel prices. The stock was up 4% at market close. 

“Following a 69-point gap opening, the ASPI reversed its gains, declining to an intra-day low of 11,462 (-179 points) as investors continued booking profits in EXPO, LOLC, HAYL and BIL in the first hour of trading. However, the index rebounded strongly, picking up 142 points and moved within the range of 11,550-11,590 before witnessing a brief upswing during closing hours,” Asia said. 

Recovering all their intra-day losses, front-line stocks EXPO, LOLC and BIL ended the session on a positive note closing 0.1%, 1.3% and 0.7% higher respectively. However, the breadth of the market continued negative with 56 gainers and 146 decliners, Asia added. 

It said foreigners recorded a net inflow of Rs. 14 million while their participation came in at 1.7% of turnover (previous day 1.5%). Net foreign buying topped in HBS at Rs. 26.5 million while net foreign selling topped in RCL at Rs. 6.7 million. 

First Capital said the bourse remained in the red zone for the second day while recording a low turnover. 

“The index spiked to an intraday high of 11,713 as soon as the market opened and remained positive for a few minutes. Eventually, the market fell straight down, reaching an intraday low of 11,454 and continued to remain in the red territory for the rest of the session. Market witnessed a marginal loss and recovered compared to Monday’s session, while closing the day at 11,641,” First Capital added.

It said turnover was led by a joint contribution of 52% from the Capital Goods sector, Food, Beverage and Tobacco sector, and Transportation sector. 

NDB Securities said the ASPI edged down as a result of price losses in counters such as LOLC Development Finance, Hayleys and Carson Cumberbatch.

It said high net worth and institutional investor participation was noted in Melstacorp, Hayleys and Royal Ceramics. Mixed interest was observed in Expolanka Holdings, Lanka IOC and LOLC Holdings, whilst retail interest was noted in SMB Leasing non-voting, hSenid Business Solutions and Browns Investments. 

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys), whilst the sector index lost 0.09%. The share price of Hayleys declined by Rs. 2.25 (1.72%) to close at Rs. 128.25.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments), whilst the sector index decreased by 0.25%. The share price of Browns Investments recorded a gain of 10 cents (0.72%) to close at Rs. 14.

Expolanka Holdings, hSenid Business Solutions and Lanka IOC were also included amongst the top turnover contributors. The share price of Expolanka Holdings increased by 50 cents (0.13%) to close at Rs. 376.50. The share price of hSenid Business Solutions gained Rs. 8.70 (69.60%) to close at Rs. 21.20. The share price of Lanka IOC moved up by Rs. 1.90 (4.03%) to close at Rs. 49.10.

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