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Wednesday, 5 October 2022 00:19 - - {{hitsCtrl.values.hits}}
An about-turn in investor sentiment forced the Colombo stock market to suffer continuous setbacks yesterday including a trading halt, though turnover improved.
In the first two days of trading, CSE has seen Rs. 324 billion in value wiped out, increasing the year-to-date dip in market capitalisation to 27% to Rs. 4.01 trillion from Rs. 4.34 trillion (down 21%) as of Friday last week.
The active S&P SL20 Index finished the day losing 5.7% or over 173 points whilst the benchmark ASPI dipped by over 4% or 413 points which NDB Securities described as the highest-day-loss in 23 weeks.
On Monday the intraday loss hit a five-month high of 281 points reflecting an “ominous” start for October after the CSE had enjoyed three consecutive months of gains.
Turnover improved to Rs. 4.5 billion from Rs. 2.5 billion on Monday. Share volume was 188.2 million as against 125 million on Monday.
Asia Securities said the market continued to witness heavy retail selling pressure leading to a sharp drop in both key indices. The decline in the S&P SL20 index triggered the 5% circuit breaker for a second consecutive session, resulting in a 30-minute trade halt in early trading. After the halt was lifted, the market saw an immediate pickup, however recovery momentum fizzled out subsequently as retail selling returned in heavyweight stocks.
EXPO ended as the biggest dragger on the ASPI (-47 points), followed by LIOC (-44 points), VONE (-32 points), HAYL (-25 points), JKH (-21 points), and SAMP (-19 points).
Turnover was led by LIOC (Rs. 1,412 million), EXPO (Rs. 448 million), ACL (Rs. 273 million), and DPL (Rs. 259 million). Among actively trading counters, LIOC (-13.7%), EXPO (-11.4%), ACL (-8.4%), LOFC (-6.0%), CICN (-4.2%), CICX (-7.1%), HAYL (-6.1%), and RICH (-6.2%) closed with sharp losses for the day.
Asia also said foreigners recorded a net inflow of Rs. 21.5 million with net buying most in MELS at Rs. 9.9 million and selling in BIL at Rs. 4.9 million.
First Capital said negative sentiment extended yet another day as the market plunged further into red amidst major panic selling which dragged down the overall investor sentiment.
As a result, the market halted within the first few minutes of the trading as the S&P SL20 index fell by 5.0% from the previous close. After the resumption, index witnessed a gradual recovery yet failed to hold its position as profit booking lingered.
NDB Securities said high net worth and institutional investor participation was noted in Dankotuwa Porcelain, LOLC Finance and CIC Holdings. Mixed interest was observed in Lanka IOC, Expolanka Holdings and ACL Cables whilst retail interest was noted in SMB Leasing (voting and nonvoting), Browns Investments and Renuka Agri Foods.
Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index lost 13.03%. The share price of Lanka IOC decreased by Rs. 37.50 (13.70%) to close at Rs. 236.25.
The Capital Goods sector was the second highest contributor to the market turnover (due to ACL Cables) whilst the sector index decreased by 4.90%. The share price of ACL Cables moved down by Rs. 9.05 (8.36%) to close at Rs. 99.20.
Expolanka Holdings, Dankotuwa Porcelain and LOLC Finance were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 22.50 (11.41%) to close at Rs. 174.75. The share price of Dankotuwa Porcelain recorded a gain of Rs. 1.50 (5.79%) to close at Rs. 27.40. The share price of LOLC Finance declined by 50 cents (6.02%) to close at Rs. 7.80.
