Speculation over fears of a second wave of COVID-19 dragged down sentiments at the Colombo stock market with both indices declining but turnover was relatively high.
The All Share Price Index declined by 98 points and the S&P SL 20 Index was down over 65 points. Turnover was above recent average at Rs. 2.5 billion.
Frist Capital said amidst the speculation of a second wave of COVID-19, market ended in the negative territory reversing the impact seen on Thursday. It said selling pressure witnessed in the banking counters and JKH resulted in the index plunging within the first 15 minutes of trading. Thereafter witnessed a short-lived bounce back followed by another downtrend during the second half of the day as the market closed at 4,993 losing 98 points, falling below the short-term psychological level of 5,000.
First Capital said banking counters amounted to 47% of turnover recording over Rs. 1 billion with the primary contribution being made by SEYB, COMB and HNB.
Market witnessed a net foreign outflow while recording low participation, it added.
NDB Securities said indices closed in red as a result of price losses in counters such as John Keells Holdings, Commercial Bank, and Dialog Axiata.
High net worth and institutional investor participation was noted in Seylan Bank, John Keells Holdings, and Commercial Bank. Mixed interest was observed in LOLC Holdings and Sampath Bank whilst retail interest was noted in Tokyo Cement Company, Access Engineering, and Seylan Bank non-voting.
Furthermore, foreigners closed as net sellers mainly due to foreign selling in John Keells Holdings.
The banking sector was the top contributor to the market turnover (due to Seylan Bank, Commercial Bank, and Hatton National Bank) whilst the sector index lost 3.13%. The share price of Seylan Bank lost Rs. 3.60 (7.56%) to close at Rs. 44 while the share price of Commercial Bank moved down by Rs. 2.70 (3.52%) to close at Rs. 73.90. Furthermore, the share price of Hatton National Bank recorded a loss of Rs. 2.50 (2.26%) to close at Rs. 108.10.
Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 3.03%. The share price of John Keells Holdings decreased by Rs. 3.50 (3.07%) closing at Rs. 110.50 whilst foreign holdings decreased by 1,862,951 shares. LOLC Holdings was also included amongst the top turnover contributors. The share price of LOLC Holdings declined by Rs. 3.30 (2.62%) to close at Rs. 122.60.
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