Bears back at bourse but week closes on the up

The Colombo stock market moved back to bearish mode, closing negatively though it managed to end the week marginally higher. 

The active S&P SL20 Index was down by 1.3% and the benchmark ASPI declined by 0.8%. 

For the week, the ASPI gained 43.08 points (0.50%) while the S&P SL20 gained 44.57 points (1.72%). Turnover averaged Rs. 1,405 million compared to Rs. 1,620 million recorded last week.

Asia Securities said the indices closed in red on Friday largely due to price losses in EXPO (-2.7%), LIOC (-5.9%), LOFC (-4.2%), CICN (-4.9%), and ACL (-3.8%). However, RICH (+3.6%), TJL (+3.1%), SLTL (+2.3%), and SUN (+1.3%) recorded gains in an otherwise negative session and cushioned the indices to a certain extent. 

Activity remained subdued with turnover reaching a three-month low supported by EXPO (Rs. 143 million), LIOC (Rs. 137 million), and BIL (Rs. 82 million). 

Foreigners generated a net inflow of Rs. 137 million led by RICH (Rs. 49 million), CTHR (Rs. 26 million), and CIC (Rs. 26 million). The breadth of the market ended negative with 58 price gainers and 127 decliners.

First Capital said the bourse regressed to red once again as day-selling activated in the market following Thursday’s price escalations while some investors took a sidelined approach with anticipations on the upcoming budget for 2023 which is scheduled to be presented to the Parliament on 14 November. 

Despite a short-lived spike as the market opened, the index continued to move on a downward trajectory as investors resorted to book profits while retail favourites EXPO and LIOC significantly dragged the index down before closing for the day at 8,729, losing 74 points. 

NDB Securities said the ASPI closed in the red as a result of price losses in counters such as Lanka IOC, Expolanka Holdings and Hayleys.

It said high net worth and institutional investor participation was noted in C T Holdings. Mixed interest was observed in Expolanka Holdings, Lanka IOC and Richard Pieris and Company whilst retail interest was noted in Browns Investments, Muller and Phipps and LOLC Finance. 

Capital Goods sector was the top contributor to the market turnover (due to Richard Pieris and Company and The Colombo Fort Land and Building) whilst the sector index lost 0.22%. The share price of Richard Pieris and Company recorded a gain of one rupee (3.56%) to close at Rs. 29.10. The share price of The Colombo Fort Land and Building appreciated by 90 cents (3.52%) to close at Rs. 26.50.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index decreased by 1.17%. The share price of Browns Investments moved down by 30 cents (4.55%) to close at Rs. 6.30.

Expolanka Holdings and Lanka IOC were also included among the top turnover contributors. The share price of Expolanka Holdings decreased by Rs. 4.50 (2.71%) to close at Rs. 161.25. The share price of Lanka IOC lost Rs. 12 (5.90%) to close at Rs. 191.50.