Stock market suffers sharp weekly dip of over 4% 

The Colombo stock market turned negative yesterday, bringing the week to a closure with one of the sharpest dips of over 4%.

The All Share Price Index declined by 121 points or 1.35% and the S&PSL20 dipped by 40 points or 1.2%. Turnover was higher at Rs. 7 billion.

During the week, the ASPI lost over 451 points or 4.8% and the S&P SL shed 159 points or 4.6%. However year-to-date the ASPI was up 31% and the S&P SL 20 was up 26%.

Turnover averaged Rs. 8 billion declining from Rs. 12 billion in the record-breaking previous week.

Asia Securities said following Thursday’s strong rebound, the market returned to negative territory as both indices moved downwards throughout the session due to retail and HNI investors realising short-term profits in selected heavyweights.

“Despite opening positively to surpass the 9,000 level, the ASPI trended downwards as a result of price declines in LOLC, BIL, and EXPO while price declines in RCL, DIPD, and HAYL weighed significantly on the index during the session,” Asia said, adding turnover remained healthy on the back of retail and HNI activity in EXPO, which contributed 48% to the total.

It said foreigners recorded a net outflow of Rs. 51.3 million while their participation declined to 1.5% of turnover (previous day 6.2%). Net foreign buying topped in EDEN at Rs. 12.7 million while net selling topped in EXPO at Rs. 35.6 million.

First Capital also said following the bull run of the previous day, the market succumbed to continued profit booking while recording an improved turnover compared to the previous day.

“The market headed on a positive note hitting the intraday high of 9,082 within the initial minute and continued to remain on an upswing. Subsequently, the index plummeted steeply by mid-session as selling pressure took charge. During the second half of the session a mild recovery was observed but did not sustain and reached an intraday low of 8,839 and closed for the week at 8,865,” First Capital said.

It said turnover was led by a joint contribution of 65% from the Transportation and Food, Beverage and Tobacco sectors.

NDB Securities said the ASPI closed in the red as a result of price losses in counters such as LOLC Holdings, Browns Investments and Expolanka Holdings.

It said high net worth and institutional investor participation was noted in Sampath Bank, Hatton National Bank and Expolanka Holdings. Mixed interest was observed in LOLC Holdings, Royal Ceramics and Dipped Products, whilst retail interest was noted in Browns Investments, Merchant Bank of Sri Lanka & Finance rights, and R. I. L. Property.

NDB said the Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index lost 2.72%. The share price of Expolanka Holdings decreased by Rs. 4.75 (2.71%) closing at Rs. 170.25.

The Food, Beverage and Tobacco sector was the second-highest contributor to the market turnover (due to Browns Investments), whilst the sector index decreased by 1.45%. The share price of Browns Investments lost 70 cents (7%) closing at Rs. 9.30.

Sampath Bank, Hatton National Bank, and LOLC Holdings were also included amongst the top turnover contributors. The share price of Sampath Bank closed flat at Rs. 52.20. The share price of Hatton National Bank recorded a gain of one rupee (0.71%) closing at Rs. 142.75. The share price of LOLC Holdings declined by Rs. 27 (4.82%) to close at Rs. 533.25.