Stock market suffers highest intraday loss in 2 months

The Colombo stock market dipped sharply yesterday led by big cap counters due to investor concerns on macro issues.

The All Share Price Index declined by 1.3%, or 174 points, and the S&P SL20 fell sharply by 2%, or 92 points. Turnover was Rs. 6 billion on a relatively low volume of 151.8 million shares. 

Asia Securities said the indices moved downwards throughout the session weighed down heavily by EXPO (-3.4%), LOLC (-1.8%), COMB (-2.0%) and MELS (-3.2%). 

“The ASPI shed 174 points (-1.3%), its sharpest single day drop in more than a month while the more liquid S&P SL20 index lost 92 points (-2.0%), its biggest single-day decline since September last year,” Asia said.   Despite the big declines in the indices, a few stocks saw sizable rallies and cushioned the fall partially during the day. Notably, activity in CCS picked up as a stronger-than-expected quarterly earnings report coupled with a 1:10 split announcement that revitalised local investors’ appetite for the stock. The stock opened trading at Rs. 525.75 and surged up 50% at Rs. 788.50 during the session before stabilising at Rs. 649 (+24.3%). 

Among actively traded counters, AAIC, CIND and UAL also ended with double-digit gains at 14.2%, 11.3% and 18.4% respectively. However, conglomerates VONE (-3.7%), HAYL (-2.1%) and HHL (-2.4%) settled with price losses. Overall, 49 stocks recorded price gains while 195 closed lower, Asia added.

It also said foreigners recorded a net outflow of Rs. 170 million while their participation declined to 2.4% of turnover (previous day 70.2%). Net foreign buying topped in SHL at Rs. 9.7 million and selling topped in CCS at Rs. 93.2 million. 

First Capital said the bourse ended the session in the red zone while recording the highest intraday loss in nearly two months due to the increased scepticism among investors over prevailing uncertain macroeconomic conditions. 

“Following the uptrend, the index surged by nearly 40 points within the first few minutes. Afterwards, the market failed to hold and scaled lower continuously as the day progressed as investors resorted to profit-taking in selected counters, closing the day at 13,210,” First Capital said, adding that turnover was led by the Food, Beverage and Tobacco sector, Capital Goods sector and Transportation sector, accounting for a joint contribution of 65%. 

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

It said high net worth and institutional investor participation was noted in Hemas Holdings, Vallibel One and Ceylon Cold Stores. Mixed interest was observed in Expolanka Holdings, Softlogic Life Insurance and Kelani Valley Plantations, whilst retail interest was noted in Industrial Asphalts, Browns Investments and Softlogic Capital. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments, Kelani Valley Plantations and Ceylon Cold Stores), whilst the sector index lost 0.28%. The share price of Browns Investments moved down by 20 cents (1.19%) to close at Rs. 16.60. The share price of Kelani Valley Plantations closed flat at Rs. 115.75. The share price of Ceylon Cold Stores appreciated by Rs. 127.75 (24.30%) to close at Rs. 653.50.

The Capital Goods sector was the second highest contributor to the market turnover, whilst the sector index decreased by 1.51%. Expolanka Holdings and Softlogic Life Insurance were also included amongst the top turnover contributors. The share price of Expolanka Holdings decreased by Rs. 13.50 (3.41%) to close at Rs. 382.25. The share price of Softlogic Life Insurance gained Rs. 16.25 (14.22%) to close at Rs. 130.50.