Stock market dips further to new low but foreigners bullish

The Colombo stock market dipped further as investors remained concerned over high volatility in the macro economic situation.

The more active S&P SL20 Index plunged by over 4% and the ASPI dipped by 3.4%. Turnover was Rs. 2.5 billion involving 138 million shares.

Asia Securities said following a brief positive start to the session, the indices ended sharply lower yesterday (09) largely due to price declines in EXPO (-7.1%), BIL (-4.0%), LOFC (-14.5%), LOLC (-8.9%), CLC (-19.6%), SCAP (-8.3%), SHL (-13.6%), and VONE (-5.7%).

The ASPI closed at a four-month low at 10,164 with a loss of 359 points (-3.4%) and the S&P SL20 index ended at 3,438 (-149 points or -4.2%).

Turnover was led by EXPO (Rs. 510 million), BIL (Rs. 295 million), and LOFC (Rs. 155 million). 

For the fifth consecutive session, foreigners ended on the buying side recording a net inflow of Rs. 68 million on net buying in EXPO (Rs. 38 million) and JKH (Rs. 37 million). Overall market breadth remained negative with 35 price gainers and 188 decliners.

First Capital said the Bourse dropped down further below 10,500 level while continuing to record turnover at a lower level. Index witnessed a slight upscale in the beginning but failed to hold on to the position as investors may have opted to shift towards more safer investment options in the midst of growing macroeconomic uncertainties.

“With the ballooning selling pressure in retail favourite counters, market closed at 10,164, losing 359 points,” First Capital said adding turnover was led by Capital Goods and Transportation sectors accounting for a joint contribution of 41%.

NDB Securities said high net worth and institutional investor participation was noted in Hemas Holdings, John Keells Holdings and Royal Ceramics. Mixed interest was observed in Expolanka Holdings, Lanka Orix Finance and LOLC Holdings whilst retail interest was noted in Browns Investments, Industrial Asphalts and SMB Leasing non-voting.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index edged down by 2.79%. The share price of John Keells Holdings declined by Rs. 1.75 (1.22%) to close at Rs. 141.25. 

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index edged down by 7.07%. The share price of Expolanka Holdings decreased by Rs. 18.25 (7.06%) to close at Rs. 240.25.

Browns Investments, Lanka Orix Finance and LOLC Holdings were also included amongst the top turnover contributors. The share price of Browns Investments lost 40 cents (3.96%) to close at Rs. 9.70. 

The share price of Lanka Orix Finance moved down by Rs. 2.40 (14.46%) to close at Rs. 14.20. The share price of LOLC Holdings recorded a loss of Rs. 78 (8.93%) to close at Rs. 795.75.

Separately, Ceylon Cold Stores announced an interim dividend of 80 cents per share.