Stock market sees end of 5-day winning run

The Colombo stock market yesterday ended its five-day winning run as both indices turned negative amidst healthy turnover.

The All Share Price index dropped by 14 points or 0.19% and the S&PSL20 closed almost flat. Turnover amounted to Rs. 2.1 billion involving 75.6 million shares.

First Capital said the bourse reverted to the red zone, failing to sustain the upward streak of five previous sessions. 

“Index displayed a downward movement over the first 30 minutes of trading and thereafter revealed a sideways movement and, subsequently, an upward swinging movement during the latter part of session, closing at 7,437 losing 14 points,” First Capital added. 

It said turnover was dominated by the Capital Goods sector followed by the Diversified Financials sector, accounting for a joint contribution of 48%. 

Asia Securities said ASPI stabilised in the narrow range of 7,420-7,435 following an initial decline. However, the index witnessed a last-hour pickup pushed by retail activity in counters such as Vallibel Finance, LB Finance and CIC, to end the session marginally lower. 

It said Capital Goods, Diversified Financials, Materials and Banks sectors led activity, collectively accounting for 82.3% of turnover. 

Foreigners recorded a net outflow of Rs. 15.5 million while their participation remained flat at 2.3% of turnover (previous day 4%). Estimated net foreign buying topped in Hemas at Rs. 13.7 million and net foreign selling topped in LFIN at Rs. 20.2 million. 

NDB Securities said the ASPI closed in red as a result of price losses in counters such as LOLC Holdings, Cargills and Ceylon Tobacco Company.

It said high net worth and institutional investor participation was noted in Commercial Bank and John Keells Holdings. Mixed interest was observed in Royal Ceramics, Vallibel Finance and LB Finance, whilst retail interest was noted in Browns Investments, SMB Leasing non-voting and Panasian Power. 

Capital Goods sector was the top contributor to the market turnover (due to Royal Ceramics), whilst the sector index lost 0.17%. The share price of Royal Ceramics closed flat at Rs. 38.30.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Vallibel Finance and LB Finance) whilst the sector index decreased by 0.49%. The share price of Vallibel Finance gained Rs. 24.25 (17.54%) to close at Rs. 162.50. The share price of LB Finance recorded a gain of Rs. 2.80 (4.49%) closing at Rs. 65.20, whilst foreign holdings decreased by 309,300 shares.

Commercial Bank and CIC Holdings were also included amongst the top turnover contributors. The share price of Commercial Bank moved down by 60 cents (0.67%) to close at Rs. 88.80. The share price of CIC Holdings appreciated by Rs. 3.60 (8.02%) to close at Rs. 48.50.

Separately, LB Finance announced a final dividend of Rs. 4 per share.