Negative closing for stock market

The Colombo stock market ended another negative week with indices dipping sharply yesterday as countrywide hartal impacted investor sentiment. 

The active S&P SL20 index declined by over 3% and the benchmark ASPI dipped by nearly 2%. For the week ASPI was down 196.78 points (2.58%) and S&P SL20 by 108.03 points (4.31%).

Turnover yesterday was Rs. 974 million involving 40.8 million shares. Average daily turnover for the shortened trading week was Rs. 953 million.

Asia Securities said the indices trended downwards throughout the session yesterday due to sharp price losses in heavyweights EXPO (-6.6%), LOLC (-9.2%), LOFC (-8.2%), HAYL (-6.5%), and JKH (-3.9%).  Turnover was supported by EXPO (Rs. 294 million), SPEN (Rs. 89 million), and CARG (Rs. 82 million). 

Asia said foreigners remained on the buying side with a net inflow of Rs. 135 million led by net buying in CARG (Rs. 82 million), SPEN (Rs. 32 million), and EXPO (Rs. 24 million). Overall, 59 stocks recorded price gains during the session while 118 settled with losses.

First Capital said the bourse dived into the red with a heavy loss as all island hartal campaigns stirred a selling pressure and restricted retail participation to a low level. 

“As soon as the market opened, the index tailed off and continued to inch down with subtle volatility as investors resorted to booking profits mainly in retail favourite counters before closing for the day at 7,427 losing 140 points. 

“Negative sentiment was persistent in the market, although last quarter earnings of certain counters which were released so far found to be at satisfactory levels,” First Capital added. It said turnover was led by a joint contribution of 53% from the Transportation sector and Capital goods sector. 

NDB Securities said yesterday high net worth and institutional investor participation was noted in Cargills and Aitken Spence. Mixed interest was observed in Expolanka Holdings, Royal Ceramics and Lanka IOC, whilst retail interest was noted in Browns Investments, LOLC Finance and SMB Leasing nonvoting. 

It said the Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index lost 6.59%. The share price of Expolanka Holdings decreased by Rs. 10.50 (6.60%) to close at Rs. 148.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to Aitken Spence and Royal Ceramics), whilst the sector index decreased by 3.75%. The share price of Aitken Spence lost Rs. 2.70 (3.82%) to close at Rs. 68.00. 

The share price of Royal Ceramics recorded a loss of 10 cents (0.35%) to close at Rs. 28.20. Cargills and Lanka IOC were also included amongst the top turnover contributors. The share price of Cargills moved up by 50 cents (0.30%) to close at Rs. 168.25. The share price of Lanka IOC declined by Rs. 1.60 (4.69%) to close at Rs. 32.50.