Stock market begins fresh week on a negative note

The Colombo stock market began a fresh week on a negative note with lacklustre investor interest mirroring fresh concerns over macro situation and outlook.

Both indices declined by 1% and turnover was Rs. 745 million involving 46 million shares.

Asia Securities said the indices moved downwards throughout the session and ended with a decline of 1% each, largely due to price losses in EXPO (-2.5%), LOLC (-3.3%), BIL (-6.4%), SAMP (-3.9%), LOFC (-2.7%), and HAYL (-2.0%).

Turnover came in at Rs. 745 million (previous session Rs. 867 million) supported by MELS (Rs. 104 million), LIOC (Rs. 101 million), and BIL (Rs. 87 million). After witnessing a positive opening of 33 points at 7,755, the ASPI slipped into negative territory, and then below the 7,700 mark in the first hour of trading. Due to absence of strong momentum, the index continued its downward trend for the rest of the session and eventually closed at 7,639 with a loss of 82 points (-1.1%).

Among the key index movers, SAMP (-13 points), BIL (-11 points), HARI (-10 points) ended as the top laggards on the ASPI while price gains in MELS (+2.5%), (+3.6%), and HNB (+1.3%) cushioned the fall to some extent. The breadth of the market turned negative with 52 price gainers and 117 decliners.

Asia also said foreigners recorded a net inflow of Rs. 2.8 million while their participation increased to 16.3% of turnover (previous day 9.4%). Net foreign buying topped in EML at Rs. 12.5 million and selling topped in CIC.N at Rs. 8 million.

First Capital said the bourse recorded another day of selling and closed in red as investors continue to remain side-lined waiting for a clear direction on the macroeconomic front. Index opened on an upbeat note but regressed to red afterwards as selling pressure mounted. While the uncertainty in the market continued to bring down investor sentiment, the index witnessed a steep decline towards the end of the session and closed for the day at 7,639, losing 82 points.

However, MELS contributed positively to the ASPI whilst profit booking was witnessed on SAMP, BIL and EXPO. Turnover declined to Rs. 744.9 million (-27% cf. monthly average turnover of Rs. 1.0 billion) was solely led by the Food, Beverage and Tobacco sector (34%) out of which 12% is contributed by the crossing transaction of MELS.

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp. Mixed interest was observed in Lanka IOC, Hayleys and Expolanka Holdings whilst retail interest was noted in Browns Investments, EML consultants and SMB Leasing.

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Melstacorp and Browns Investments) whilst the sector index lost 1.60%. The share price of Melstacorp increased by one rupee (2.50%) to close at Rs. 41. The share price of Browns Investments moved down by 50 cents (6.41%) to close at Rs. 7.30.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index decreased by 0.17%. The share price of Lanka IOC lost 20 cents to close at Rs. 83.20.

Hayleys and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Hayleys recorded a loss of Rs. 1.50 (23%) to close at Rs. 72.30. The share price of Expolanka Holdings declined by Rs. 4.50 (2.54%) to close at Rs. 173.

Separately, Lanka Milk Foods announced its second interim dividend of Rs. 2.50 per share while Teejay Lanka announced its final dividend of Rs. 1.50 per share.