Dip persists at Colombo stock market raising fresh investor concern

Thursday, 4 March 2021 03:19 - - {{hitsCtrl.values.hits}}

Indices decline by a further 2%, reducing YTD gain to 6-7% from 22-25% a month ago

The Colombo stock market suffered further setback yesterday as both indices declined by 2%, raising fresh concerns among investors though turnover improved. The All Share Price Index (ASPI) declined by over 150 points or 2%, and the S&P SL20 dipped by 73 points or 2.5%. Turnover amounted to Rs. 2.4 billion, crossing the Rs. 2-billion-mark for the first time in recent sessions.

From a 22% year-to-date (YTD) gain as of 7 February for ASPI and 25% by S&P SL20, the market has now declined to 6% YTD gain in ASPI and 7.5% by S&P SL20.

First Capital the market recorded a near 7-week low while continuing the fall in the red zone for the 3rd consecutive session.

“Index experienced downward movement followed by a short-lived uptrend during the early hour of trading, thereafter witnessed a strong downtrend once again as it hit its intraday low of 7,141. Within the second half of the session, market recorded a slight uptrend and closed at 7,193 losing 150 points,” First Capital added.

It said the Capital Goods sector led the turnover for the session closely followed by Food and Beverage sector making a joint contribution of 53%. Parcel trade in LION boosted the turnover for the session amounting to 15%.

NDB Securities said the ASPI closed in red because of price losses in counters such as LOLC Holdings, John Keells Holdings (JKH) and Brown and Company.

It said high net worth and institutional investor participation was noted in Lion Brewery. Mixed interest was observed in LOLC Holdings, Browns Investments and Haycarb, whilst retail interest was noted in Vallibel One, Expolanka Holdings and Dipped Products.

The Capital Goods sector was the top contributor to the market turnover (due to Vallibel One), whilst the sector index lost 3.32%. The share price of Vallibel One lost Rs. 2.20 (4.11%) to close at Rs. 51.30.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Lion Brewery and Browns Investments), whilst the sector index decreased by 0.16%. The share price of Lion Brewery closed flat at Rs. 540.00. The share price of Browns Investments declined by Rs. 0.10 (1.79%) to close at Rs. 5.50.

LOLC Holdings and Expolanka Holdings were also included amongst the top turnover contributors. Moreover, the share price of LOLC Holdings moved down by Rs. 19.25 (5.51%) to close at Rs. 330, whilst the share price of Expolanka Holdings recorded a loss of Rs. 1.30 (2.83%) to close at Rs. 44.70.

In comparison, sustained selling, the market saw net foreign buying of Rs. 2.5 million. On Tuesday, net selling was Rs. 700 million and the YTD figure now stands at Rs. 14.2 billion.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.