Stock market sees Rs. 320 b in value wiped off in past three sessions

The Colombo stock market has seen Rs. 320 billion in value wiped off in the past three sessions reinforcing bearish investor sentiment. After last Thursday’s record day gain propelling market capitalisation by Rs. 410 billion to Rs. 4.812 trillion, negative sessions have dragged the latter to Rs. 4.492 trillion by yesterday.

Market capitalisation is down by 18% year to date whilst the All-Share Price Index is down by 15.88% and S&P SL20 by 17%.

The decline in indices yesterday were sharper by over 2.6% as opposed to 1% on Monday. Turnover which plunged to 7-month low on Monday improved marginally yesterday to Rs. 1.66 billion involving 90 million shares.

Asia Securities said the indices moved downwards throughout the session dragged by price losses in EXPO (-6.2%), BIL (-4.5%), AEL (-4.8%), LOLC (-4.9%), LOFC (-5.8%), RCL (-4.2%), CLC (-3.6%) and SCAP (-9.3%). Turnover was led by EXPO (Rs. 340 million), BIL (Rs. 122 million) and DIAL (Rs. 122 million). 

It said foreigners continued on the buying side for the second consecutive session generating a net inflow of Rs. 95 million boosted by net buying in DIAL (Rs. 97 million). Overall, 33 stocks ended higher while 176 settled with losses.

First Capital said the ASPI was trapped further into the red zone for the third consecutive day as investors lost confidence over weakening economic circumstances.

“The Index exhibited a steep fall during the first half of the session and thereafter declined on a slower pace for the rest of the session to close at 10,284 wiping 281 points,” First Capital said adding turnover was helped by a significant contribution from Transportation and Capital Goods sectors which collectively accounted for 40%.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank non-voting, LOLC Holdings and Royal Ceramics. Mixed interest was observed in Expolanka Holdings, Lanka IOC and Access Engineering, whilst retail interest was noted in SMB Leasing non-voting, Browns Investments and Dialog Axiata.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index dropped by 6.22%. The share price of Expolanka Holdings decreased by Rs. 17 (6.22%) to close at Rs. 256.25.

The Capital Goods sector was the second highest contributor to the market turnover, whilst the sector index lost 3.12%. Browns Investments, Dialog Axiata, Lanka IOC and Hatton National Bank nonvoting were also included amongst the top turnover contributors. The share price of Browns Investments lost 50 cents (4.55%) to close at Rs. 10.50. The share price of Dialog Axiata closed flat at Rs. 11.30. The share price of Lanka IOC recorded a loss of Rs. 7 (13.26%) to close at Rs. 45.80. The share price of Hatton National Bank nonvoting closed flat at Rs. 128.