CSE suffers highest daily loss for the year

The Colombo stock market yesterday suffered its highest daily loss as investors reacted negatively to the deadlock in external debt restructuring talks whilst some element of profit taking was evident too.

The benchmark ASPI plunged by 214 points or 1.8% and the active S&P SL20 declined by 2.66% or 95 points. Turnover was Rs. 1.48 billion involving 95.4 million shares.

The market has seen Rs. 53 billion in value wiped off in the past two days, after last week saw market capitalisation gain by Rs. 92 billion to Rs. 4.69 trillion.

Asia Securities said the ASPI took a downturn as investors continued to book profits amidst the media reports on the Government’s unsuccessful talks with the Ad Hoc Group of ISB holders. Banking counters saw sharp price declines, mainly in SAMP (-2.8%), HNBN (-2.1%), NTB (-2.4%), PABC (-3.0%), NDB (-3.3%) and COMBN (-5.0%). Additionally, BIL (-3.5%), LIOC (-1.2%), LOFC (-3.3%), and LOLC (-2.9%) showed notable price losses during the session. 

COMBN (-33 points), SAMP (-17 points), and HNBN (-13 points) ended as the biggest laggards on the ASPI.

Market turnover was led by LIOC (Rs. 146mn), TAP (Rs. 119mn), and BIL (Rs. 100mn).

Foreigners recorded a net inflow of Rs. 43.1mn. Net foreign buying topped in KHL.N at Rs. 36.2mn and selling topped in RICH.N at Rs. 6.9mn.

First Capital said the stock market exhibited a bearish trend driven by Sri Lanka’s inability to reach a consensus on restructuring terms with bondholders while retailer activity remained robust, albeit with decreased participation from HNWIs. 

The ASPI concluded at 11,792, marking a decline of 214 points with banking sector stocks such as COMB, SAMP, and HNB, along with blue-chip companies like MELS and LOLC, weighed down the index, overshadowing minimal positive contributions. 

Number trades settled at 18,000 with retailers actively engaging in profit-taking from major banks like COMB, SAMP, and HNB, which had seen price gains in the previous week. 

Turnover was down 36.4% from the Rs. 2.3Bn daily average for the month, primarily led by the Banking sector (20%) and the Diversified Financials and Food, Beverage and Tobacco sectors, collectively contributing 29%. 

NDB Securities said high net worth and institutional investor participation was noted in Lanka IOC, John Keells Holdings and John Keells Hotels. Mixed interest was observed in Ambeon Capital, Browns Investments and LOLC Finance whilst retail interest was noted in Hikkaduwa Beach Resort Rights, Lanka Credit and Business Finance and Industrial Asphalts. 

The Banking sector was the top contributor to the market turnover whilst the sector index lost 3.37%.

Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Finance and Capital Alliance) whilst the sector index decreased by 2.81%. The share price of LOLC Finance recorded a loss of 20 cents to Rs. 5.90. The share price of Capital Alliance declined by Rs. 1.10 to Rs. 59.00.

Lanka IOC, Ambeon Capital and Browns Investments were also included amongst the top turnover contributors. The share price of Lanka IOC decreased by Rs. 1.50 to Rs. 125.50. The share price of Ambeon Capital lost 20 cents to Rs. 11.70. The share price of Browns Investments moved down by 20 cents to Rs. 5.50.