Friday Apr 19, 2024
Friday Apr 19, 2024
Friday, 25 February 2022 02:59 - - {{hitsCtrl.values.hits}}
The Colombo stock market continued its nightmare run triggering a yet another trading halt after suffering 5% dip mid-day and closing negative by a similar percentage.
Since last week, the market has lost Rs. 843 billion in value as investor sentiment turned negative on macro factors whilst others opined the bourse needs new buyers for attractive valuations.
Due to the massive plunge in recent days, the year to date ASPI negative return is nearing 13% and S&P SL20 topped 15%. However, foreigners have cashed in with net buying of nearly Rs. 300 million so far this week.
Asia Securities said the indices ended sharply lower owing to heavy losses in EXPO (-9.7%), LOLC (-10.1%), LOFC (-10.8%), BIL (-10.4%), HAYL (-7.2%), VONE (-7.1%) and CLC (-6.7%).
The ASPI ended below the 11,000 level, reaching a three-month low at 10,657 (-561 points) and the S&P SL20 index declined 207 points to close at 3,585. Trading on the Exchange was halted for 30 minutes after a decline of 5% in the S&P SL20 triggered a circuit breaker during the session.
Asia said following the recent sell-off, the CSE Price Earnings Ratio currently stands at 10.75, its lowest level since September last year, signalling attractive valuations for fundamentally resilient stocks that posted strong earnings for the last quarter.
Turnover was Rs. 3,710 million (previous session Rs. 4,524 million). Foreigners continued on the buying side recording a net inflow of Rs. 63.5 million (previous session Rs. 67 million) with net foreign inflow topping in DIAL (Rs. 24 million), EXPO (Rs. 21 million) and JKH (Rs. 20.8 million).
Foreigners have recorded a net inflow of Rs. 292 million so far this week on continuous buying in DIAL and EXPO. Overall, 15 stocks closed in green while 217 settled with losses.
First Capital said the Bourse consecutively plunged with another substantial loss of 561 points for the third time in a week.
“With the rising fear of investors, the index dropped down in the beginning, yet managed to trade in the green zone for a few minutes. After suffering from a continuous breakdown, the market halted for 30 minutes during the latter part of the session, and closed the day at a nearly 3-month low of 10,657, losing 561 points,” said First Capital adding LOLC and EXPO together negatively contributed 103 points for the drop in index. Turnover was led by Diversified Financials and Transportation sectors accounting for a joint contribution of 42%.
NDB Securities said high net worth and institutional investor participation was noted in Guardian Capital Partners, Renuka Hotels and Royal Ceramics. Mixed interest was observed in Expolanka Holdings, LOLC Holdings and Hayleys, whilst retail interest was noted in Browns Investments, LOLC Finance and SMB Leasing voting and nonvoting.
Diversified Financials sector was the top contributor to the market turnover (due to LOLC Holdings and LOLC Finance), whilst the sector lost 7.84%. The share price of LOLC Holdings moved down by Rs. 93.50 (10.14%) to close at Rs. 828.75. The share price of LOLC Finance recorded a loss of Rs. 2.20 (10.84%) to close at Rs. 18.10.
Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings), whilst the sector index decreased by 9.66%. The share price of Expolanka Holdings decreased by Rs. 25.75 (9.68%) to close at Rs. 240.25. Browns Investments and Hayleys were also included amongst the top turnover contributors. The share price of Browns Investments lost Rs. 1.20 (10.43%) to close at Rs. 10.30. The share price of Hayleys declined by Rs. 7.60 (7.24%) to close at Rs. 97.40.
Separately Three Acre Farms and Ceylon Grain Elevators announced their first and final dividends of Rs. 10 and Rs. 6 per share respectively.
