Stock market sinks with Rs. 315 b in value wiped off; trading halt

• ASPI suffers sharpest intra-day fall in one year; ends at 2-month low
• Broad-based retail and HNI selling pressure triggers plunge amidst uncertainties attached to the aggravated power cuts and fuel shortages, brokers say

The Colombo stock market yesterday suffered one of its steepest falls with Rs. 315 billion in value wiped off in a day of tension including a trading halt.

The All Share Price Index finished the day with a 4.47% decline or over 542 points after suffering a 5% dip triggering the circuit breaker. The S&P SL20 closed 5% down or over 207 points.

Market capitalisation slumped to Rs. 5.218 trillion from Rs. 5.533 trillion.

Year to date ASPI decline has crossed the 5% mark whilst that of S&P SL20 was 7%.

Turnover yesterday was Rs. 4.2 billion involving nearly 222 million shares. 

Asia Securities said the benchmark indices slumped due to broad-based retail and HNI selling pressure. Price declines in EXPO (-8.5%), LOLC (-9.4%), CLC (-9.3%), LOFC (-9.2%), HAYL (-7.4%), RCL (-8.0%), and VONE (-9.3%) weighed on the indices throughout the session and triggered a market-wide circuit breaker leading to a 30 minute trade halt as the S&P SL20 index declined 5% during the day.

It said the ASPI recorded its highest single-day decline in the last one year. Overall market breadth closed weak with 12 price gainers and 224 decliners.

Asia also said foreigners recorded a net inflow of Rs. 80 million while their participation increased to 1.5% of turnover (previous day 0.9%). Net foreign buying topped in DIAL at Rs. 45.2 million and selling topped in JKH at Rs. 7.7 million.

First Capital said the Bourse dropped down significantly for the fourth day with the highest intraday loss in one year amidst uncertainties attached to the aggravated power cuts and fuel shortages. 

Following a panic selling by retailers, the index displayed a continuous decline and dragged down below the 12,000 level. Eventually, ASPI ended the session at a two month low closing of 11,591, losing 543 points.

First Capital said turnover was purely led by retailers from the Transportation and Diversified Financials sector with a joint contribution of 45%.

NDB Securities said the indices closed in red as a result of price losses in counters such as LOLC Holdings, Expolanka Holdings and Royal Ceramics.

It said high net worth and institutional investor participation was noted in Dialog Axiata, ACL Cables and Sunshine Holdings. Mixed interest was observed in Lanka Orix Finance, Commercial Leasing & Finance and Expolanka Holdings, whilst retail interest was noted in Browns Investments, Industrial Asphalts and SMB Leasing nonvoting.

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index lost 8.47%. The share price of Expolanka Holdings decreased by Rs. 26.50 (8.49%) to close at Rs. 285.50.

Diversified Financials sector was the second highest contributor to the market turnover (due to Commercial Leasing & Finance, Lanka Orix Finance and LOLC Holdings), whilst the sector index decreased by 7.29%. 

The share price of Commercial Leasing & Finance moved down by Rs. 4.40 (9.34%) to close at Rs. 42.70. The share price of Lanka Orix Finance recorded a loss of Rs. 2.30 (9.20%) to close at Rs. 22.70. The share price of LOLC Holdings declined by Rs. 105.25 (9.41%) to close at Rs. 1,013.

Browns Investments was also included amongst the top turnover contributors. The share price of Browns Investments lost 90 cents (6.47%) to close at Rs. 13.