The Colombo stock market turned negative yesterday in an apparent reflection of investor concerns over the country’s foreign reserves and debt servicing as well as behavior of one illiquid stock.
The All Share Price Index lost 21 points or 0.27% and S&P SL20 declined by 35 points or 1.15%. Turnover improved to Rs. 2.3 billion involving 60.6 million shares.
First Capital said “fundamental shares plunged as traders dumped” perhaps in disappointment.
“The bourse ended in the red as a result of a drop in fundamental shares, wiping out the gains witnessed in the last two trading sessions, while ASPI retreated from the 19-week record high,” First Capital said. “Index surged over the first 10 minutes of trading, reaching an intra-day high of 7,956, and thereafter, displayed a continuous downward trend, finally closing at an intraday low of 7,857,” it added.
First Capital said turnover was at a strong level of Rs. 2.3 billion, recording more than Rs. 2 billion for the first time in over a week, led by the Diversified Financials sector accounting for a total contribution of 50%.
Asia Securities said the ASPI commenced the session surpassing the 7,900 mark and reached an intra-day high of 7,954 level (+76 points) during early hours. However, the index reversed early gains and ended the session lower on the back of price declines in counters such as LOLC, NEST and JKH. Turnover improved from yesterday’s levels, led by institutional and HNI activity in LOLC which contributed 46% to overall activity.
It said Diversified Financials, Capital Goods, Food, Beverage and Tobacco, and Materials sectors led activity, collectively accounting for 78.1% of turnover.
Asia said foreigners recorded a net outflow of Rs. 12 million while their participation declined to 1% of turnover (previous day 2.2%). Estimated net foreign buying topped in VFIN.N at Rs. 3.7 million and net foreign selling topped in VPEL.N at Rs. 4.7 million.
NDB Securities said the ASPI closed in red as a result of price losses in counters such as LOLC Holdings, Nestle Lanka and John Keells Holdings.
It said high net worth and institutional investor participation was noted in LOLC Holdings, Hayleys and Expolanka Holdings. Mixed interest was observed in Dipped Products, Royal Ceramics and Alumex, whilst retail interest was noted in Browns Investments and Industrial Asphalts.
The Diversified Financials sector was the top contributor to the market turnover (due to LOLC Holdings), whilst the sector index gained 3.42%. The share price of LOLC Holdings decreased by Rs. 16.25 (3.89%) to close at Rs. 401.75.
The Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys and Royal Ceramics), whilst the sector index decreased by 1.50%. The share price of Hayleys lost Rs. 0.90 (1.18%) to close at Rs. 75.20. The share price of Royal Ceramics declined by Rs. 0.60 (1.66%) to close at Rs. 35.50.
Browns Investments and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Browns Investments moved down by Rs. 0.10 (1.64%) to close at Rs. 6. The share price of Expolanka Holdings recorded a loss of Rs. 0.50 (0.99%) to close at Rs. 49.80.
Separately, R I L Property announced a final dividend of Rs. 0.15 per share.
(FT)