CSE’s loss of value extends to Rs. 285 b so far this week

Friday, 28 January 2022 00:00 -     - {{hitsCtrl.values.hits}}


  • Both indices suffer third consecutive dip 
  • ASPI dips below 13,000-point level; down 3.6% this week
  • S&P dip sharper at 4.4%
  • Market capitalisation slips back to below Rs. 6 t
  • For a change, foreigners turn bullish with net buying of Rs. 119 m
  • The Colombo stock market suffered further setbacks yesterday with both indices down sharply increasing the loss of value since last week to Rs. 285 billion. 
  • For the third consecutive day, indices headed south and dipped below the psychological 13,300-point level. 

The All Share Price Index lost 180 points or 1.38% and the S&P SL20 dipped by 1.75% or 78 points. 

This week so far, the ASPI is down 3.6% or 486 points and the S&P SL20’s plunge is sharper at 4.4% or 204 points. The market capitalisation of the Colombo Stock Exchange has lost Rs. 285 billion to close at Rs. 5.73 trillion as opposed to Rs. 6.01 trillion last Friday.  

For a change, foreigners turned bullish and accounted for Rs. 119 million in net inflow thanks to Rs. 126.5 million of net buying of Expolanka shares as locals were on a selling mode.

CSE’s loss...

Asia Securities said following a positive start to the session, the ASPI reversed course and erased all of its early gains due to steep losses recorded by active stocks such as LOLC (-5.1%), EXPO (-4.8%), BIL (-3.1%) and HAYL (-2.1%). 

“The index commenced the session with a gap up of 89 points at 13,155 and crossed the 13,200 mark to reach an intra-day high of 13,214 (+148 points) in the first hour of trading. Subsequently, the ASPI moved downwards and dropped more than 543 points as a result of widespread selling pressure in actively traded counters. 

“After scaling to an intra-day low of 12,671 (-395 points), the index saw a healthy rebound owing to a sharp 289-point as investors capitalised on the plunge snapping up bargains in front-line stocks,” Asia said. 

However, the index closed the session below the 13,000 level with a loss of 180 points led by LOLC (-37 points), EXPO (-36 points) and BIL (-12 points). The breadth of the market continued negative with 51 price gainers and 181 decliners.

It also said foreigners recorded a net inflow of Rs. 118.6 million while their participation increased to 3.0% of turnover (previous day 1.8%). Net foreign buying topped in EXPO at Rs. 126.5 million and selling topped in AAIC at Rs. 43.3 million.

First Capital said the bourse remained lower and closed the day in the red zone while losing more than 100 points for the third consecutive day. 

“The index traded positively during the first hour of the session but gradually slid down and displayed a sharp fall during the mid-day reaching an intraday low of 12,653. Retail favourite counters such as LOLC and EXPO pulled down the index significantly. Towards the latter part of the session, index regained a few points from intraday low yet closed lower at 12,885,” First Capital said.

It added turnover was led by the Transportation sector, and Food, Beverage and Tobacco sector accounting for a joint contribution of 47%. 

NDB Securities said high net worth and institutional investor participation was noted in Chevron Lubricants, Access Engineering and Hayleys. Mixed interest was observed in Expolanka Holdings, Softlogic Life Insurance and LOLC Holdings, whilst retail interest was noted in Browns Investments, SMB Leasing non-voting and Industrial Asphalts. 

It said the Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index lost 4.79%. The share price of Expolanka Holdings decreased by Rs. 18 (4.77%) to close at Rs. 359.

The Food, Beverage and Tobacco sector was the second-highest contributor to the market turnover (due to Browns Investments), whilst the sector index decreased by 1.92%.

The share price of Browns Investments lost 50 cents (3.07%) to close at Rs. 15.80. Softlogic Life Insurance, LOLC Holdings and Diesel and Motor Engineering were also included amongst the top turnover contributors. The share price of Softlogic Life Insurance moved up by Rs. 3.75 (2.58%) to close at Rs. 149. The share price of LOLC Holdings recorded a loss of Rs. 64.25 (5.07%) to close at Rs. 1,204. The share price of Diesel and Motor Engineering appreciated by Rs. 86.75 (6.61%) to close at Rs. 1,398.75.