Thursday’s bullish sentiment short-lived as stock market ends week negatively

The Colombo stock market proved Thursday’s heroics were temporary as it closed yesterday on a negative note reaffirming investor sentiment remains besieged owing to worsening macro-economic conditions though some have welcomed recent measures. 

The active S&P SL20 dipped by over 2% and the benchmark ASPI declined by 1.65%. This was a sharp contrast to all-time high-day gain enjoyed on Thursday when S&P SL20 shot up by 8.5% and ASPI by 7%.

For the week ASPI lost 566.0 points (5%) and S&P SL20 lost 164.3 points (4.3%).

Turnover yesterday amounted to Rs. 3 billion involving 143 million shares. For the week daily turnover averaged Rs. 3.23 billion.

Asia Securities said the yesterday’s dip was largely due to price declines in EXPO (-3.1%), LOLC (-4.4%), CLC (-8.9%), LOFC (-7.5%), BIL (-0.9%), HAYL (-5.1%) and VONE (-5.6%). 

LIOC ended with a sharp gain of 6.9% and witnessed higher retail activity during the session, underpinned by the fuel price hikes announced. 

Turnover was led by EXPO (Rs. 792 million), BIL (Rs. 349 million) and LIOC (Rs. 259 million). 

Asia also said following six sessions of net foreign inflow, foreigners ended on the selling side with a net outflow of Rs. 16 million mainly due to net selling in ACAP (Rs. 89 million) while JKH and DIAL continued to witness foreign buying interest during the session generating a net inflow of Rs. 24 million and Rs. 15 million respectively. Overall, 57 stocks closed higher while 144 settled with losses.

First Capital said the bourse slid to negative territory following the growing uncertainties over the fuel price hike and further tightening of import restrictions. 

“The Index started with sizable volatility and spiked by 135 points in the beginning, but failed to sustain the bull run afterwards. During the mid-day, market settled down lower and traded in the red zone till the end, before closing the day at 10,677, losing 179 points,” First Capital said, adding turnover was led by Transportation and Food, Beverage and Tobacco sectors accounting for a joint contribution of 44%. 

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

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index lost 3.11%. The share price of Expolanka Holdings decreased by Rs. 9 (3.13%) to close at Rs. 278.25.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments), whilst the sector index lost 0.51%. The share price of Browns Investments lost by 10 cents (0.88%) to close at Rs. 11.30.

Lanka IOC, Lanka Orix Finance and Royal Ceramics were also included amongst the top turnover contributors. The share price of Lanka IOC moved up by Rs. 3.70 (6.90%) to close at Rs. 57.30. 

The share price of Lanka Orix Finance recorded a loss of Rs. 1.40 (7.53%) to close at Rs. 17.20. The share price of Royal Ceramics declined by Rs. 2 (3.63%) to close at Rs. 53.10.

Separately Equity Two announced an interim dividend of 65 cents per share.