Colombo stock market ends week with a sharp plunge

The Colombo stock market ended the week with a sharp plunge amidst low activity as investors remained sceptical over prospects.

The ASPI declined 407.85 points (4.49%) while the S&P SL20 lost 184.86 points (6.64%) during the week. 

Turnover averaged Rs. 1,620 million, declining from Rs. 2,564 million averaged last week.

Asia Securities said the market ended the week on a negative note with the indices seesawing between gains and losses in muted trading as investors remained sidelined awaiting more directional cues ahead of the 2023 budget reading. 

Yesterday the ASPI ended with a loss of 52 points (-0.6%) weighed down by CTC (-6.3%), LIOC (-4.5%), CICN (-1.5%), SUN (-1.6%), and AGST (-1.5%). However, the decline in the ASPI was partly offset by price gains in GLAS (+12.0%), TKYOX (+10.6%), KFP (+13.8%), EXPO (+1.2%), CICX (+2.0%), and SLTL (+3.2%). 

Turnover came in at Rs. 1,316 million led by LIOC (Rs. 342 million), JKH (Rs. 140 million), and CICN (Rs. 127 million). Foreigners returned to the buying side generating a net inflow of Rs. 211 million boosted by CICN (Rs. 105 million), JKH (Rs. 65 million), and LIOC (Rs. 20 million). 

“After witnessing a positive start to the session at 8,774 (+37 points), the ASPI on Friday dropped to an intra-day low of 8,668 (-69 points) in the first hour of trading. The index saw a subsequent pickup to 8,762 (+25 points), however lost momentum in mid-day trading and slipped back into negative territory to close at 8,686 (-52 points). The breadth of the market ended weak with 72 price gainers and 121 decliners,” Asia added. 

First Capital said the bourse closed the week on a negative note, down marginally as activities slowed down and selling pressure eased off. Index witnessed a sharp plunge during the early hours of trading and displayed significant volatility throughout the session before closing the day at 8,686, losing 52 points. Huge selling pressure was seen on CTC and LIOC which majorly dragged the index down to 2 and half months low. 

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Ceylon Tobacco Company, Lanka IOC and Vallibel One.

It said high net worth and institutional investor participation was noted in John Keells Holdings and CIC Holdings. Mixed interest was observed in Lanka IOC, Expolanka Holdings and CIC Holdings nonvoting whilst retail interest was noted in SMB Leasing voting and nonvoting, Browns Investments and Agstar. 

Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index lost 4.19%. The share price of Lanka IOC decreased by Rs. 9 (4.48%) to close at Rs.191.75.

Materials sector was the second highest contributor to the market turnover (due to CIC Holdings voting and nonvoting) whilst the sector index increased by 1%. 

The share price of CIC Holdings voting moved down by Rs.1.50 (1.46%) to close at Rs.101. 

The share price of CIC Holdings nonvoting appreciated by Rs.1.40 (1.99%) to close at Rs. 71.80.

John Keells Holdings and Expolanka Holdings were also included among the top turnover contributors. The share price of John Keells Holdings lost 75 cents to close at Rs. 129. The share price of Expolanka Holdings recorded a gain of Rs. 1.75 (1.19%) to close at Rs. 148.75.