CSE begins new week with 2.5% drop in indices

The Colombo stock market began a new week with a sharp drop amidst lacklustre investor activity.

Both indices declined by over 2.5% whilst turnover was Rs. 1.1 billion involving 46.5 million shares. Despite local pessimism, foreigners remained net buyers. 

Asia Securities said indices closed sharply lower due to broad-based selling pressure. The ASPI declined below the 8,300 mark to close at 8,268 (-224 points or -2.6%) and the S&P SL20 index ended at 2,519 (-2.6% or 67 points). 

EXPO (-22 points), LIOC (-13 points), RICH (-11 points), and SPEN (-11 points) ended as the major laggards on the ASPI, however JKH (+2.7%), HEXP (+4.4%) and TKYOX (+5.6%) ended with decent gains in an otherwise negative session. Overall, 20 stocks ended with price gains while 181 settled with losses during the session.

Asia also said foreigners recorded a net inflow of Rs. 82.2 million and net foreign buying topped in LIOC at Rs. 20.3 million and selling topped in HAYL at Rs. 0.4 million.

First Capital said the ASPI commenced the week on a negative note while recording its highest intraday loss in one-month as dull sentiment extended over panic selling. 

The Index witnessed a steep fall since the beginning of the session and continued to descend further where retail favourites EXPO and LIOC majorly pulled down the index and closed the day at 8,268, losing 224 points. Turnover remained low as investors continued to remain sidelined. 

NDB Securities said high net worth and institutional investor participation was noted in Renuka Holdings. Mixed interest was observed in Expolanka Holdings, Lanka IOC and John Keells Holdings whilst retail interest was noted in Browns Investments, LOLC Finance and Ex-Pack Corrugated Cartons. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings, ACL Cables and Renuka Holdings) whilst the sector index lost 1.23%. The share price of John Keells Holdings moved up by Rs. 3.50 (2.71%) to close at Rs. 132.50. The share price of ACL Cables recorded a loss of Rs. 6.90 (8.77%) to close at Rs. 71.80. The share price of Renuka Holdings declined by 70 cents (4.52%) to close at Rs. 14.80.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index decreased by 7.38%. The share price of Expolanka Holdings decreased by Rs. 12.25 (7.39%) to close at Rs. 153.50.

Lanka IOC was also included amongst the top turnover contributors. The share price of Lanka IOC lost Rs. 10.50 (5.81%) to close at Rs. 170.25.

Separately, Distilleries Company of Sri Lanka announced a second interim cash dividend of 60 cents per share.