Stock market dip continues albeit moderately

Wednesday, 7 October 2020 00:25 -     - {{hitsCtrl.values.hits}}



  • Rare net foreign inflow thanks to buying into Expolanka Holdings

The Colombo stock market yesterday ended down, though moderately in comparison to the record plunge on Monday. 

Acuity Stockbrokers said the bourse ended on a negative note as the ASPI decreased by 0.94% or 52.57 points to close at 5,534.61 points, while the S&P SL20 Index also decreased by 0.71% or 16.29 points to close at 2,272.22.

On Monday the ASPI suffered its worst daily dip of 7.6% and S&P SL 20 Index declined by 7%. 

Turnover yesterday decreased by 26.7% relative to Monday to Rs. 2.8 billion while Expolanka accounted for 17.8% of the day’s total turnover. 

Foreign investors recorded a net inflow of Rs. 23.1 million compared to a net outflow of Rs. 142.8 million on Monday.

Frist Capital said panic-stricken investors fuelled the downfall of the bourse on the back of rising of COVID-19 cases for the second consecutive session. 

“The Index moved downwards within the first few minutes of trading as it hit its intraday low of 5,391, thereafter market experienced a strong uptrend and reached its intraday high of 5,760. Later during mid-day index witnessed a gradual downtrend and closed at 5,535 losing 53 points,” First Capital added. 

It said Capital Goods counters led the turnover closely followed by Banking and Transportation counters making a joint contribution of 54%. Foreign investors changed hands to dominate the buying-side after two months while recording low participation.

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Bukit Darah, Ceylinco Insurance and Carson Cumberbatch.

High net worth and institutional investor participation was noted in John Keells Holdings and DFCC Bank. Mixed interest was observed in Expolanka Holdings, Tokyo Cement Company voting and non-voting, whilst retail interest was noted in Access Engineering, Royal Ceramics and R I L Property. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings), whilst the sector index lost 0.93%. The share price of John Keells Holdings lost Rs. 0.70 (0.54%) to close at Rs. 129.90. 

The Banking sector was the second highest contributor to the market turnover, whilst the sector index decreased by 1.06%.

Expolanka Holdings, Tokyo Cement Company voting and non-voting and Hayleys Fabric were also included amongst the top turnover contributors. The share price of Expolanka Holdings increased by Rs. 0.10 (0.84%) closing at Rs. 12.00, whilst foreign holdings increased by 1,287,500 shares. 

The share price of Tokyo Cement Company moved up by Rs. 0.20 (0.40%) to close at Rs. 50.20. Furthermore, the share price of Hayleys Fabric recorded a loss of Rs. 0.20 (0.87%) to close at Rs. 22.90, whilst the share price of Tokyo Cement Company nonvoting declined by Rs. 0.50 (1.21%) to close at Rs. 40.90.

C T Holdings announced a final dividend of Rs. 2.80 per share.