The Colombo Stock Exchange experienced a day of net foreign outflow and profit booking by local investors, leading to a decline in key indices. The year-to-date net foreign outflow surpassed Rs. 8 billion, with yesterday contributing Rs. 2.9 billion on account of LOLC Finance. A significant block of LOLC shares traded off-board, pushing the overall turnover to Rs. 4 billion.
Market analysts attributed the downward trend to profit taking from previous gains. The active S&P SL20 index dipped by 0.8%, while the benchmark All-Share Price Index (ASPI) fell by 0.4%. Despite the decline, some sectors witnessed positive movement. Companies like CALT, WATA, and CFVF experienced price increases.
LOLC Finance dominated trading activity, with a large block of shares changing hands through a crossing. The Diversified Financials sector, led by LOLC Finance and Capital Alliance, emerged as the top contributor to market turnover. However, the sector index itself witnessed a slight decline.
The Banking sector also played a significant role in turnover, fueled by Hatton National Bank and Pan Asia Banking Corporation. However, similar to Diversified Financials, the Banking sector index experienced a decrease. Watawala Plantations, with its share price rising by Rs. 2.50, was another notable contributor to overall turnover.
Overall, the trading session reflected a cautious market sentiment, with foreign investors continuing their net outflow and local participants focusing on profit taking. While some sectors and companies saw gains, the broader market trend remained negative.