Colombo stock market ends 10-day winning streak as investors book profit

The Colombo stock market yesterday ended its 10-day winning streak as investors booked profits though turnover was moderate.

The active S&P SL20 was down by 0.2% and the benchmark ASPI dipped by 0.1%. Turnover was Rs. 1.3 billion involving 79.7 million shares. The market also saw a net foreign inflow.

Asia Securities said after a range-bound opening, the indices slipped into the red on Monday as investors opted to book profits following 10 consecutive sessions of price gains. BIL (-3.7%), LIOC (-3.0%), RCL (-6.0%), LOFC (-1.8%), TJL (-1.8%), and ACL (-1.1%) recorded price losses during the session while CFVF (+11.1%), FCT (+11.5%), and AGST (+5.3%) saw renewed buying from investors. RCL (-9 points), BIL (-5 points) and LIOC (-4 points) ended as the biggest laggards on the ASPI. The breadth of the market was negative with 59 price gainers and 108 decliners.

Turnover was led by HNB (Rs. 92 million), MGT (Rs. 88 million), and BIL (Rs. 86 million).

Foreigners recorded a net inflow of Rs. 18.7 million. Net foreign buying topped in SAMP.N at Rs. 15.8 million and selling topped in HNB.N at Rs. 14.4 million. First Capital said the stock market dipped into the negative territory as investors opted for profit-taking after a prolonged period of gains over the past 10 sessions. Although there was a brief uptick in the first half-hour of trading, the market soon turned downward, with the index closing at 11,321, shedding 16 points. Investors were particularly keen on booking profits on stocks that had experienced price increases in the previous week, including BIL, LIOC, SAMP, and selected construction related stocks. While sentiment towards banking stocks was mixed, treasury stocks garnered interest from buyers, spurred by expectations of dividends following the announcement from FCT.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, Hemas Holdings and Hayleys Fabric. Mixed interest was observed in Browns Investments, First Capital Holdings and First Capital whilst retail interest was noted in LOLC Finance, SMB Leasing and Agstar. The Diversified Financials sector was the top contributor to the market turnover (due to First Capital Holdings and First Capital Treasuries) whilst the sector index lost 0.13%. The share price of First Capital Holdings recorded a gain of Rs. 3.30 to Rs. 33. The share price of First Capital Treasuries appreciated by Rs. 3 to Rs. 29.00. The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index decreased by 0.17%. The share price of Browns Investments moved down by 20 cents to Rs. 5.20. Hatton National Bank and Hayleys Fabric were also included amongst the top turnover contributors. The share price of Hatton National Bank increased by Rs. 1.50 to Rs. 167.75. The share price of Hayleys Fabric lost 40 cents to Rs. 43.90.