Stock market turnover plunges to 7-month low as macro crises keep investors away

The Colombo stock market began a fresh week on a negative note continuing from where it ended on Friday as investor sentiment remained depressed with activity dipping to a new time low.

Both the All Share Price Index and S&P SL20 Index were down by over 1%. Turnover was only Rs. 1.3 billion involving 51.3 million shares.

Asia Securities said the indices remained in negative territory due to price declines in EXPO (-1.8%), BIL (-2.7%), RCL (-6.2%), CLC (-4.1%) and AEL (-5.4%). However, DIPD closed out with a sharp 5.5% gain in an otherwise negative session.

Turnover was led by EXPO (Rs. 254 million), BIL (Rs. 104 million) and LOLC (Rs. 82 million).

“Following a 50-point gap up to 10,718, the ASPI declined to 10,597 (-80 points) in the first few minutes of trading. Subsequently, the index saw a brief recovery gaining 116 points, however reversed its course again and slipped into negative territory due to broad-based retail and HNI selling. Eventually, the ASPI ended at 10,565 (-112 points) while the S&P SL20 index closed at 3,617 (-38 points),” Asia said adding overall, 55 stocks ended higher while 147 settled with losses.

It also said foreigners recorded a net inflow of Rs. 31.6 million while their participation increased to 3.1% of turnover (previous day 3.0%). Net foreign buying topped in DIAL at Rs. 48.2 million and selling topped in ACAP at Rs. 10.5 million.

First Capital said the ASPI resumed the bearishness from the previous session and dipped further down while squashing the turnover to a seven-month low.

“The Index plunged sharply during the first 10 minutes of trading and thereafter gathered a short-lived positive momentum followed by a ceaseless downward trend to close at 10,565 losing 112 points,” First Capital said, adding Capital Goods and Transportation sectors collectively contributed for 39% of the turnover.

NDB Securities said high net worth and institutional investor participation was noted in Access Engineering, Royal Ceramics and Hayleys. Mixed interest was observed in Expolanka Holdings, LOLC Holdings and Dipped Products whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting and Dialog Axiata.

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys), whilst the sector index lost 1.99%. The share price of Hayleys declined by Rs. 1.75 (1.72%) to close at Rs. 100.25.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings), whilst the sector index lost 1.80%. The share price of Expolanka Holdings decreased by Rs. 5 (1.80%) to close at Rs. 273.25.

Browns Investments, LOLC Holdings and Dipped Products were also included amongst the top turnover contributors. The share price of Browns Investments lost 30 cents (2.65%) to close at Rs. 11. The share price of LOLC Holdings moved down by Rs. 6.50 (0.78%) to close at Rs. 832.00. The share price of Dipped Products recorded a gain of Rs. 2.20 (5.54%) to close at Rs. 41.90.