The Colombo stock market continued its dismal performance, starting the new week with a fresh low in turnover.
The active S&P SL20 index dipped by 0.5%, while the benchmark ASPI declined by 0.1%. Turnover was a mere Rs. 376.7 million involving 112.6 million shares.
Asia Securities reported that the indices began the week on a low note, with the ASPI declining by 14 points (+0.1%) and the S&P SL20 index dropping 16 points (-0.5%) due to price losses in major stocks like SLT (-2.1%), HNBN (-1.0%), DIAL (-1.0%), and HAYL (-1.0%). HNBN (-6 points), SAMP (-4 points), and HAYL (-3 points) were the biggest laggards on the ASPI. Overall, 69 stocks ended in green, while 83 settled with losses.
Turnover was led by JKH (Rs. 35 million) and HNBN (Rs. 27 million). Foreigners recorded a net inflow of Rs. 1.8 million, with net foreign buying topping in LFIN at Rs. 12.9 million and selling topping in LLUB at Rs. 7 million.
First Capital noted that the broader market faced another day of decline, driven by weakened investor sentiment and thin trading volumes amidst lingering political uncertainties in the country. The ASPI started the week on a negative note, reflecting the uncertainties of the previous week, and closed in red at 11,619, losing 14 points for the third consecutive day.
The Banking sector counters and index heavyweights dragged the market down, with HNB, SAMP, COMB, HAYL, and GLAS emerging as the top negative contributors. With limited participation from high net worth individuals (HNWIs) and retail investors, turnover slipped to nearly a 7-month low and was 63% lower than the month’s average. The Capital Goods sector led the turnover with 24%, followed by the Banking and Food, Beverage, and Tobacco sectors, which jointly contributed 32% to the overall turnover.
NDB Securities observed high net worth and institutional investor participation in Hayleys Fabric and Lanka Milk Foods. Mixed interest was noted in John Keells Holdings, Hayleys, and Aitken Spence Hotel Holdings, while retail interest was seen in Browns Investments, Maharaja Foods, and Dialog Axiata.
The Capital Goods sector was the top contributor to market turnover (due to John Keells Holdings and Hayleys), although the sector index lost 0.19%. The share price of John Keells Holdings decreased by 25 cents to Rs. 191, and the share price of Hayleys dropped by one Rupee to Rs. 101.
Hayleys Fabric, Lanka Milk Foods, and Aitken Spence Hotel Holdings were also among the top turnover contributors. The share price of Hayleys Fabric increased by 60 cents to Rs. 47, the share price of Lanka Milk Foods decreased by 40 cents to Rs. 27.80, and the share price of Aitken Spence Hotel Holdings appreciated by Rs. 1.10 to Rs. 65.