Colombo stock market ends 3-week winning streak

The Colombo stock market couldn’t extend its winning streak for the fourth consecutive week as it ended on a negative note.

Following three weeks of gaining momentum, the indices closed lower with the ASPI declining 96.29 points (0.96%) and the S&P SL20 declining 34.31 points (1.06%) for the week. Average daily turnover of Rs. 4.23 billion.

On Friday the indices ended the week on a flat note as retail and HNI investors opted to book profits at higher levels in heavyweight stocks ahead of the weekend while eyeing the debt restructuring talks with international creditors, Asia Securities said. 

Turnover amounted to Rs. 3,017 million (previous session Rs. 4,110 million) supported by LIOC (Rs. 394 million), EXPO (Rs. 238 million), and JKH (Rs. 151 million). 

Asia said following a 44-point gap-down opening, the ASPI witnessed a brief recovery and remained range bound in between 9,960-10,000 till mid-afternoon trade. 

However, the index moved downwards again during closing hours to end at 9,965 (-36 points).  Front-line stocks LIOC (-0.8%), EXPO (-1.4%), ACL (-2.2%), BIL (-2.5%), RCL (-1.6%), SUN (-1.3%), LOLC (-3.1%), and TKYO (-6.3%) closed in red while CFVF (+11.9%), ASIY (+15.7), FCT (+11.1%), and BALA (+6.6%) ended with price gains. 

Overall, 83 stocks recorded price gains while 119 settled with losses.

Asia also said foreigners recorded a net inflow of Rs. 16.8 million while their participation declined to 2.1% of turnover (previous day 4.8%). Net foreign buying topped in LIOC at Rs. 24.8 million and selling topped in EXPO at Rs. 11.5 million.

First Capital said the bourse slipped to the red zone as investors resorted to profit booking while recording a turnover at three and a half-week low. However, banking sector and treasury counters witnessed collection as investors anticipated a positive outcome on the upcoming debt restructuring meeting. 

Meanwhile, index displayed sizable volatility throughout the session as profit booking was mainly witnessed on hotels and materials sectors, which led the index to close the day at 9,965, losing 36 points. NDB Securities said high net worth and institutional investor participation was noted in John Keells. Holdings, CIC Holdings and ACL Cables. 

Mixed interest was observed in Lanka IOC, Expolanka Holdings and Richard Pieris & Company whilst retail interest was noted in SMB Leasing nonvoting, Asia Siyaka Commodities and Browns Investments. 

Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings, Richard Pieris & Company and ACL Cables) whilst the sector index lost 0.29%. 

The share price of John Keells Holdings moved down by 25 cents to close at Rs. 142.75. The share price of Richard Pieris & Company recorded a gain of Rs. 1.50 (4.73%) to close at Rs. 33.20. The share price of ACL Cables declined by Rs. 2.50 (2.24%) to close at Rs. 109.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover whilst the sector index decreased by 0.30%.

Lanka IOC and Expolanka Holdings were also included among the top turnover contributors. The share price of Lanka IOC decreased by Rs. 2.25 (0.77%) to close at Rs. 288.25. The share price of Expolanka Holdings lost Rs. 3.25 (1.45%) to close at Rs. 221.