The Colombo stock market opened a fresh week on a negative note with both indices down as investors remained lacklustre amidst profit taking though turnover was at a healthy level.
The All Share Price Index declined by 0.8% or over 103 points and the S&P SL20 dipped sharply by 1.5% or over 63 points. Strategic deals boosted turnover to Rs. 5.4 billion.
Asia Securities said that despite opening the session on a firm note, the indices closed lower on Monday (20) due to price declines in heavyweights LOLC (-2.6%), BIL (-0.7%), EXPO (-0.7), RCL (-2.5%), and HAYL (-2.6%), while investors continued mild profit-booking across sectors at relatively higher levels. Turnover was boosted by HNB Finance PLC’s acquisition of Prime Finance PLC via a block trade of Rs. 2,123 million. The acquisition consisted of 87.27% of the outstanding shares in the company and accounted for 39% of the total turnover for the session. LIOC and SINS ended sharply higher, gaining 9.8% and 7.2% respectively and witnessed higher activity during the session. Overall, 53 stocks closed higher while 151 settled with losses, Asia said.
It also said foreigners recorded a net outflow of Rs. 48 million while their participation declined to 1.5% of turnover (previous day 6.9%). Net foreign buying topped in HAYL at Rs. 21.7 million and net selling topped in BIL at Rs. 20.8 million.
First Capital said the bourse regressed to the red zone with a hefty two-week-high intra-day loss as hesitant investors withdrew amidst the credit downgrade by Fitch and recorded a low turnover.
“The index opened on a positive note and remained high briefly before it started to decline as a selling spree emerged. Market landed more steeply on the red territory following mid-session and hit an intraday low of 11,623 before closing for the day at 11,650,” First Capital added.
It said turnover was led by a joint contribution of 60% from the Diversified Financials sector and Capital Goods sector.
NDB Securities said the ASPI closed in red as a result of price losses in counters such as LOLC Holdings, Expolanka Holdings and LOLC Development Finance.
It said mixed interest was observed in Expolanka Holdings, Lanka IOC and Hayleys, whilst retail interest was noted in SMB Leasing voting, SMB Leasing non-voting and Browns Investments.
The Diversified Financials sector was the top contributor to the market turnover (due to Prime Finance), whilst the sector index lost 1.35%. The share price of Prime Finance increased by Rs. 2.30 (13.53%) to close at Rs. 19.30. The Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys), whilst the sector index decreased by 1.74%. The share price of Hayleys declined by Rs. 3.50 (2.61%) to close at Rs. 130.50.
Expolanka Holdings, Lanka IOC and Browns Investments were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 2.75 (0.73%) to close at Rs. 376. The share price of Lanka IOC moved up by Rs. 4.20 (9.77%) to close at Rs. 47.20. The share price of Browns Investments recorded a loss of 10 cents (0.71%) to close at Rs. 13.90.
Separately, Talawakelle Tea Estates announced an interim dividend of 65 cents per share.
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