Colombo stock market suffers fresh week of losses

The Colombo stock market suffered a fresh week of losses ending earlier hopes of winning streak continuing from last week. 

The active S&P SL20 lost 109.5 points or 4.23% and the benchmark ASPI dipped by 210.8 points or 2.36%. In the previous week the Colombo bourse gained for the first time since mid-March.

Turnover this week averaged Rs. 694 million as against Rs. 669 million last week. Market saw a net foreign outflow with HNBN suffering selling of Rs. 28.5 million whilst Dialog saw buying of Rs. 2.9 million.

Asia Securities said indices ended the week on a negative note as the market witnessed another subdued session on Friday. Notable price losses were recorded by BIL (-2.0%), UBC (-3.4%), EXPO (-1.6%), LOFC (-2.0%), and LIOC (-1.3%). However, AEL (+1.4%), HEXP (+1.7%), and LLUB (+2.3%) closed in red. Overall, 58 stocks closed in green while 108 ended with losses.

Turnover was led by BIL (Rs. 72 million), HNBN (Rs. 43 million), and HHL (Rs. 36 million).

Foreigners recorded a net inflow of Rs. 27.5 million. Net foreign buying topped in LLUB at Rs. 15.2 million and First Capital said the market was on a down trend as the index edged down lower closing at 8,717 losing 63 points. The surrounding uncertainties of the DDR strategies along with the ongoing DDO discussions that are yet to be finalised by the CBSL made the investors take a wait and see approach. Moreover, among the top negative contributors COMB topped the chart due to the decline of the profits recorded during 1Q2023.

Furthermore, the Carson Cumberbatch PLC group of companies dragged the index further down due to the delisting of their subsidiary companies namely, Good Hope PLC, Selinsing PLC, Sharlimar PLC and Indo Malay PLC.

Turnover was recorded as Rs. 524.5 million, lowest in a week, aided by the Food, Beverage and Tobacco sector (52%), Banking sector (21%) and Capital Goods sector (21%) respectively.

NDB Securities said high net worth and institutional investor participation remained subdued for the day whilst mixed interest was observed in Hatton National Bank, Hemas Holdings and Melstacorp. Retail interest was noted in Browns Investments, SMB Leasing and Industrial Asphalts. The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Browns Investments and Melstacorp) whilst the sector index lost 2.07%. The share price of Browns Investments decreased by 10 cents to Rs. 5. The share price of Melstacorp closed flat at Rs. 53.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hemas Holdings) whilst the sector index decreased by 0.56%. The share price of Hemas Holdings closed flat at Rs. 63.50.

Hatton National Bank and Union Bank were also included amongst the top turnover contributors. The share price of Hatton National Bank gained 25 cents to Rs. 118.25. The share price of Union Bank declined by 30 cents to Rs. 8.40.