Stock market takes a breather after prolific week

The Colombo stock market yesterday had a negative close as investors took profit after prices had record highs from early this week.

The All Share Price Index closed 19 points down, or 0.2%, and the S&PSL20 shed 6 points, or 0.18%. But for the week, the ASPI was up 4.31% and S&PSL20 was higher by 4.47%.

Turnover was Rs. 9.4 billion involving nearly 640 million shares whilst the average turnover for the week was nearly Rs. 12 billion.

First Capital said the bourse slipped back to the red zone, snapping the previous three-day rally on the back of profit-taking in selected counters.

“The index spiked to an intraday high of 9,426 within the first few minutes of trading. However, the first hour of trading displayed sizable volatility, with the index eventually falling to an intraday low of 9,296 during mid-day, followed by a sideways movement and a downtrend, before closing at 9,317,” First Capital said.

It said turnover was led by the Capital Goods sector, followed by the Food, Beverage and Tobacco sector collectively accounting for a total contribution of 55%.

Asia Securities said the indices snapped their three-day record-breaking rally as investors opted to mildly book profits ahead of the weekend. 

“The ASPI witnessed a volatile early session crossing the 9,400 level and reached an intra-day high of 9,420 in the first hour of trading. However, the index erased its early gains due to profit-taking activities at recent high levels in heavyweights LOLC, BIL, and VONE and stabilised in the range of 9,330-9,350 before witnessing another pull-back in the final hour of trading,” Asia said. 

It said turnover declined, however, remained at stronger levels on the back of HNI and retail buying in momentum-driven stocks. 

EXPO continued topping the turnover list (19% of total turnover) while a significant contribution came from Hemas due to foreign selling which was absorbed by local institutional and HNI investors.

Asia said foreigners recorded a net outflow of Rs. 1.5 billion while their participation increased to 8.9% of turnover (previous day 4.2%). Net foreign buying topped in BIL at Rs. 5.6 million while net foreign selling topped in Hemas at Rs. 1.3 billion. 

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

It said high net worth and institutional investor participation was noted in Hayleys, Sampath Bank and Hatton National Bank. Mixed interest was observed in Expolanka Holdings, Hemas Holdings and Vallibel One, whilst retail interest was noted in SMB Leasing voting and nonvoting and Browns Investments. 

The Capital Goods sector was the top contributor to the market turnover (due to Hemas Holdings, Hayleys and Vallibel One), whilst the sector index lost 0.59%. The share price of Hemas Holdings lost 40 cents (0.56%) to close at Rs. 71.40. The share price of Hayleys recorded a gain of 75 cents (0.63%) to close at Rs 119.75. The share price of Vallibel One declined by 60 cents (0.86%) to close at Rs. 69.20.

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 0.35%. The share price of Browns Investments moved down by 30 cents (2.59%) to close at Rs. 11.30.

Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings increased by Rs. 2 (1.08%) to close at Rs. 186.75.