Locals wary as CSE indices plunge

• JKH leads in net foreign buying of over Rs. 800 m; YTD inflow tops Rs. 16 b

The Colombo stock market began a fresh week with a sharp plunge in indices reaffirming worsening local investor sentiment though foreigners stepped up their buying especially in JKH propelling the year-to-date inflow to over Rs. 16 b.

The active S&PSL20 plunged by over 4% and the benchmark ASPI by over 3%.

The Colombo bourse last week marked its third consecutive week of losses and highest in recent times as investor sentiment tumbled on macro issues. The ASPI lost 8.9% and S&PSL fell 12.4%.

Turnover yesterday was Rs. 3 billion involving 91.3 million shares.

Asia Securities said the indices closed in red for a third consecutive session due to selling pressure in heavyweight stocks. EXPO (-12.0%), LOLC (-6.5%), LIOC (-6.7%), ACL (-9.8%), LOFC (-4.1%), RCL (-7.6%), and HAYL (-7.5%) ended sharply lower while SAMP (+1.8%), COMB (+1.0%), ASIR (+2.5%), DFCC (+4.9%), and RCH (+1.6%) closed higher for the day.

The ASPI slipped below the 9,000 mark during the session to reach a six-week low at 8,745 (-305 points) while the S&P SL20 index closed at 2,653 (-119 points). JKH (Rs. 756 million) generated the highest turnover during the session boosted by net foreign buying (Rs. 688 million). EXPO ended as the biggest laggard on the ASPI contributing 35 negative points followed by LIOC (-19 points), LOLC (-18 points), HAYL (-17 points), and RICH (-14 points). Overall, 29 stocks closed in green while 177 ended lower for the day.

Foreigners recorded a net inflow of Rs. 828.5 million while their participation increased to 14.8% of turnover (previous day 4.8%).

First Capital said the market commenced the week on a negative note while ASPI plunged below 9,000 level, triggered by margin calls and extended panic selling. Retail favourites EXPO and LIOC majorly pulled down the index whereas collection was witnessed on selected banking sector counters as investors continued to collect beaten down shares. In response to that, index witnessed a steep fall since the beginning of the session and continued to descend and closed the day at 8,744, losing 305 points. 

NDB Securities said High net worth and institutional investor participation was noted in John Keells Holdings, ACL Cables and CIC Holdings. Mixed interest was observed in Expolanka Holdings, Lanka IOC and CIC Holdings nonvoting whilst retail interest was noted in Browns Investments, SMB Leasing (voting and nonvoting) and LOLC Finance.

Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and ACL Cables) whilst the sector index lost 3.50%. The share price of John Keells Holdings decreased by 50 cents to close at Rs. 128.50.

The share price of ACL Cables declined by Rs. 9.50 (9.83%) to close at Rs. 87.10.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index decreased by 11.96%. The share price of Expolanka Holdings lost Rs. 19.75 (11.99%) to close at Rs. 145.

Lanka IOC and CIC Holdings nonvoting were also included amongst the top turnover contributors. The share price of Lanka IOC moved down by Rs. 15.25 (6.71%) to close at Rs. 212. The share price of CIC Holdings nonvoting recorded a loss of Rs. 1.80 (2.65%) to close at Rs. 66.10.

Separately Union Chemicals Lanka announced a first interim cash dividend of Rs. 15 per share.