Colombo stock market ends 3-week negative run

The Colombo stock market turned bearish yesterday but gains in the early part of the week helped it to close on the up ending three weeks of decline. 

The benchmark ASPI gained by 43.85 points (+0.48%) and the S&P SL20 edged up 10.90 points (+0.39%). Average daily turnover was Rs. 2.56 billion. The market also enjoyed net foreign buying. With net foreign inflow of Rs. 48.6 million yesterday the amount  so far in October moved up to Rs. 1.5 billion and year to date to Rs. 16.8  billion.

Asia Securities said following two sessions of gains, the indices edged down yesterday, largely due to price losses in EXPO (-1.2%), LIOC (-0.3%), ACL (-2.9%), BIL (-3.1%), LOFC (-3.8%), and RCL (-1.4%). 

However, LHCL (+21.6%) and SLTL (+17.9%) managed to close with significant gains in an otherwise negative session, indicating higher investor interest building up in State-owned enterprises. Similarly, healthcare sector stocks witnessed a strong session led by ECL (+13.3%), NHL (+7.8%), AMSL (+5.1%), CHL (+4.8%), and ASIR (+3.7%). 

Friday’s turnover stood at Rs. 2,347 million supported by LIOC (Rs. 379 million), EXPO (Rs. 32 million), CICN (Rs. 199 million), and CICX (Rs. 150 million). Following an 88-point gap-up opening at 9,237, the ASPI turned volatile in early trading witnessing an immediate decline to 9,097 followed by a sharp pickup to 9,193. 

Thereupon, the index pared gains and eventually slipped into red territory to close at 9,093. SAMP (-12 points), HAYL (-8 points), and BIL (-5 points) ended as the major laggards on the ASPI. The breadth of the market closed weak with 69 gainers and 122 decliners.

First Capital said the ASPI plunged down marginally following the record gains yesterday as investors took a cautious approach ahead of the budget speech scheduled for the 18 October 2022. 

Index moved with volatility throughout, following a short-lived spike in the index initially. Investor interest renewed on LHCL and SLTL on the news of a potential privatisation while selling pressure took charge in banking and export-oriented counters before closing for the day at 9,093, losing 55 points. 

NDB Securities said on Friday, high net worth and institutional investor participation was noted in Lanka Walltiles, CIC Holdings and Sri Lanka Telecom. Mixed interest was observed in Lanka IOC, Expolanka Holdings and CIC Holdings nonvoting whilst retail interest was noted in SMB Leasing voting and nonvoting, Agstar and Browns Investments.

Materials sector was the top contributor to the market turnover (due to CIC Holdings voting and nonvoting) whilst the sector index gained 0.66%. The share price of CIC Holdings voting moved up by Rs. 5.05 (5.20%) to close at Rs. 102.25. The share price of CIC Holdings nonvoting recorded a gain of Rs. 1.10 (1.56%) to close at Rs. 71.60. The Capital Goods sector was the second highest contributor to the market turnover whilst the sector index edged down by 0.06%.

Lanka IOC, Expolanka Holdings and Sri Lanka Telecom were also included among the top turnover contributors. The share price of Lanka IOC decreased by Rs. 0.75 (0.32%) to close at Rs. 236. The share price of Expolanka Holdings lost Rs. 2 (1.19%) to close at Rs. 165.75. The share price of Sri Lanka Telecom appreciated by Rs. 9.90 (17.90%) to close at Rs. 65.20.