Stock market indecisive

Thursday, 5 May 2022 04:45 - - {{hitsCtrl.values.hits}}

The Colombo stock market closed on an indecisive note following the long weekend, amidst lacklustre investor activity and turnover yesterday.

The All-Share Price Index ended with a loss of 26.22 points or -0.34% whilst S&P SL20 gained marginally by 0.7% or 1.75 points. Turnover was Rs. 1.06 billion involving 46 million shares. Asia Securities said the market ended on a mixed note with the ASPI closing in fractionally low mainly due to price declines in EXPO (-2.8%), VONE (-7.4%), DFCC (-4.6%), and RCL (-3.2%) while the more liquid S&P SL20 index remained in positive territory supported by heavyweight stocks LOLC (+8.4%).

Transportation, Diversified Financials, Food, Beverage and Tobacco, and Capital Goods sectors led activity, collectively accounting for 76.1% of turnover.

The ASPI commenced trading with a gap-up of 42 points to 7,666, however witnessed a subsequent pullback to 7,500 (-124 points) in the first hour of trading. Picking up momentum, the index gradually regained around 99 points and eventually ended the session at 7,599 (-26 points), recovering most of its early losses.

LIOC witnessed a strong session, recording a sharp 32.1% gain, however turnover generated by the stock was moderate at Rs. 63 million. The breadth of the market closed negative with 72 gainers and 118 decliners.

Asia Securities also said foreigners recorded a net inflow of Rs. 36.7 million while their participation declined to 2.0% of turnover (previous day 2.1%). Net foreign buying topped in TJL.N at Rs. 27.1 million, whilst net foreign selling topped in AEL.N at Rs. 3.7 million. No crossings were recorded for on Thursday and the Market P/E stood at 6.37.

First Capital said market closed in the red zone after consecutive gains during the last three trading sessions, as selling spree emerged. Following the long weekend, the market opened yesterday on an upbeat note, but soon plunged steeply.

It said turnover of Rs. 1.1 billion was led by a joint contribution of 62% from the Transportation sector and Diversified Financials sector, whilst adding that foreign investors remained net buyers and recording low participation.

NDB Securities said high net worth and institutional investor participation was remained subdued for the day.

Mixed interest was observed in Expolanka Holdings, LOLC Holdings and Lanka IOC, whilst retail interest was noted in Browns Investments, SMB Leasing and LOLC Finance.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index lost 2.80%. The share price of Expolanka Holdings decreased by Rs 4.75 (2.8%) to close at Rs. 164.75.

Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Holdings and LOLC Finance), whilst the sector index increased by 3.87%. The share price of LOLC Holdings gained Rs. 36.75 (8.40%) to close at Rs. 474.25. The share price of LOLC Finance declined by Rs. 0.10 (1.47%) to close at Rs. 6.70.

NDB Securities also said that Harischandra Mills announced an interim dividend of Rs. 25.00 per share. Union Chemicals Lanka announced a final dividend of Rs. 10.00 per share.