The Colombo stock market’s downturn continued yesterday, with the benchmark ASPI index hitting a four-month low amid subdued trading activity. The ASPI dropped by 0.9% or over 108 points, closing at 11,511, marking its fourth consecutive session in the red. The S&P SL20 Index also fell by 1%, while turnover totaled Rs. 558.6 million across 29 million shares.
According to First Capital, the Colombo bourse has been experiencing prolonged bearish sentiment, as investors have adopted a cautious stance. The market’s performance was notably impacted by index heavyweights, with major contributors to the decline including COMB, CTHR, JKH, BIL, and LOLC. COMB saw a 1.7% price drop following the start of rights share trading.
While turnover saw a recovery from Monday’s significant drop, it remained 41.2% below the monthly average. The Capital Goods sector led market turnover with 28%, followed by the Banking and Diversified Financials sectors, which together accounted for 30% of the total turnover. Foreign investors also turned net sellers, with a net outflow of Rs. 10.6 million.
NDB Securities reported increased participation from high net worth and institutional investors in Sampath Bank and Hatton National Bank. Mixed interest was noted in John Keells Holdings, Hayleys, and Lanka IOC, while retail investors showed increased interest in Browns Investments, LOLC Finance, and Nation Lanka Finance.
The Capital Goods sector was the leading contributor to turnover, but its sector index fell by 1.05%. John Keells Holdings saw a share price decline of Rs. 1.75 to Rs. 189.25, and Hayleys’ share price dropped by one rupee to Rs. 100.
The Banking sector was the second-largest contributor to turnover, with Sampath Bank’s share price falling by 20 cents to Rs. 75.80 and Hatton National Bank’s price decreasing by 75 cents to Rs. 188. Lanka IOC also featured among the top turnover contributors, with its share price dipping Rs. 1.75 to Rs. 116.25.