The Colombo stock market lost a further Rs. 23 billion in value yesterday increasing the two day toll to Rs. 59 billion as selling spree went on top gear but buying interest before close has raised hopes for a better day today.
“Selling pressure continued to drag the indices down amid moderate turnover levels with activity levels driven by a mix of speculative trading on second tier stocks and large trades on selected blue chips,” John Keells Stock Brokers said.
All Share Index dipped by nearly 1% whilst MPI’s decline was over 1%. Turnover was Rs. 2.37 billion whilst a redeemer midst sell out was net foreign inflow though a modest Rs. 74 million.
“Indices took a dip yet again, with the ASPI dropping below 7,000 at one point. Selling pressure was seen across the board, with investors stuck in high priced speculative stocks selling blue chips to cut losses. Nevertheless, renewed interest in selected stocks towards the end of trading helped the ASPI close marginally above the 7,000 level,” NDB Stockbrokers said.
Bank, Finance and Insurance sector was the main contributor to the market turnover (due to Sampath Bank and Dunamis Capital), while the sector index decreased by 1.00%. Sampath Bank share price dropped Rs. 7.40 (2.82%) and closed at Rs. 255.00.
Diversified sector also contributed significantly to the market turnover (due to John Keells Holdings). The sector index dropped 1.46%. John Keells Holdings’ share price dropped by Rs. 1.30 (0.44%) and closed at Rs. 297.20. Blue Diamond Jewellery Worldwide made the highest contribution to the market turnover. The share closed at Rs. 8.90, having appreciated Rs. 1.00 (13.16%).
Renewed interest was witnessed in Nation Lanka Finance, although it did not make it to the top turnover contributor list.
Reuters said stock market fell to a five-month closing low on margin calls that forced retail investors to sell their stakes to settle credit transactions amid low liquidity while the rupee edged down on importer dollar demand.
ASI ended 0.95 percent or 67.34 points weaker at 7,015.71, its lowest since 17 January. It recovered from 1.42 percent fall early in the day.
Over 6 billion rupees of cash has been locked in the recent IPOs by conglomerate ExpoLanka Holdings, which started trading on Monday, and Softlogic Holdings, which is yet to start trading on the stock exchange, bourse data showed.
Traded volume was 186.7 million, against a five-day average of 278.1 million. The 30-day and 90-day average trading volumes were 172.9 million and 105 million, respectively. Last year’s daily average was 67.9 million.
The bourse is still Asia’s best performer in 2011 with a 5.7 percent gain, after bringing in the region’s top return of 96 percent last year.
The rupee closed weaker at 109.57/60 a dollar from Tuesday’s 109.55/58 due to importer dollar demand, currency dealers said. It hit a high of 109.30 a dollar on 9 June, its highest since 30 October, 2008, Reuters data showed.