The Colombo stock market plunged further yesterday amidst mixed sentiments over the devaluation of the rupee. 

The All Share Price Index crashed by 4% and the S&P SL20 declined by 3.5%. Turnover was Rs. 3.4 billion involving 305.5 million shares.

Analysts said that though devaluation was technically favourable to dollar earning companies some of the big counters declined dragging the market down. It was opined that devaluation impact on imports and overall uncertainty dampened investor sentiment. 

Asia Securities said after witnessing a gap-up of 180 points, the ASPI moved downwards dragged by broad-based retail and HNI selling pressure. 

The index ended the session at 10,523 (-437 points), its lowest level since 10 November 2021 while the S&P SL20 declined to a two-week low. 

Notable price declines were recorded by LOFC (-16.2%), CLC (-19.5%), BIL (-9.0%), AAIC (-14.2%), SCAP (-18.2%), SHL (-8.2%), VONE (-11.8%), EXPO (-4.6%), LOLC (-5.2%) and HAYL (-4.0%). 

Turnover was led by EXPO (Rs. 602 mn), BIL (Rs. 514 mn) and LOLC (Rs. 252 mn). 

Asia also said the market saw a net foreign flow for the fourth straight session at Rs. 81 mn on continuous net buying in JKH (Rs. 40.4 mn) and RCL (Rs. 18 mn). Overall, 18 stocks ended in green while 218 recorded price losses during the session.

First Capital said the bourse constantly closed the session in the red territory for the second  consecutive day while recording the highest intraday loss in nearly 2-weeks. 

“The Index dropped down significantly and continued to trade in the red zone till the end of the session as the CBSL decided to impose greater flexibility in the exchange rate. With the steady decline, market fell to four-month low closing to 10,523,” First Capital said, adding turnover was led by Food, Beverage and Tobacco and Diversified Financials sectors accounting for a joint contribution of 45%. 

NDB Securities said high net worth and institutional investor participation was noted in Hemas Holdings, Melstacorp and Sunshine Holdings. Mixed interest was observed in Expolanka Holdings, LOLC Holdings and Royal Ceramics whilst retail interest was noted in SMB Leasing nonvoting, Browns Investments and Lanka Orix Finance.

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments) whilst the sector index edged down by 4.43%. The share price of Browns Investments lost one Rupee (9%) to close at Rs. 10.10.

Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Holdings and Lanka Orix Finance) whilst the sector index edged down by 6.55%. The share price of LOLC Holdings moved down by Rs. 48 (5.21%) to close at Rs. 873.75. The share price of Lanka Orix Finance recorded a loss of Rs. 3.20 (16.16%) to close at Rs. 16.60.

Expolanka Holdings and Royal Ceramics were also included amongst the top turnover contributors. The share price of Expolanka Holdings decreased by Rs. 12.50 (4.61%) to close at Rs. 258.50. The share price of Royal Ceramics declined by Rs. 4.70 (8.53%) to close at Rs. 50.40.

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