Inflated concerns of possible DDR triggers Banking counter

ASPI reverted to red territory losing 44 points triggered by month-end margin calls and extended panic selling. In the midst of rising concerns on the possible debt restructuring (DDR), hefty selling pressure emerged on the Banking sector where COMB, NDB and DFCC largely dragged the index down.

Although index started the day on a bullish note gaining over 50 points in the beginning it failed to hold on to the position as investors exited selected stocks amidst the pressure on margin calls. Moreover, as LIOC is expected to hold the market leadership position among the private companies given the expansion of new sheds, investor interest reactivated on the stock which largely contributed to the turnover.

Meanwhile, investor participation continued to regress as retailers remained on the sidelines awaiting for clarity on the DDR. Accordingly, turnover remained low and recorded at LKR 912.7Mn, remaining below 51% cf. monthly average turnover of LKR 1.9Bn where Banks and Food, Beverage & Tobacco sectors jointly contributed 38% to the overall turnover.

LIOC and SAMP led the overall turnover while LIOC contributed LKR 124.3Mn (14%) and SAMP contributed LKR 71.8Mn (8%). Meanwhile, BIL dominated the market volume with 6.2Mn shares (14%) while SEMB.X recorded the second largest volume of 5.6Mn shares (12%).

Overall volume marginally declined compared to the previous session and recorded at 45.66Mn. Top gainers for the day were CDB (+5%), KPHL (+5%), COCO (+4%), MAL (+4%) and CTLD (+4%). Meanwhile, the top losers for the day were RFL (-12%), TESS.X (-11%), HDFC (-10%), ECL (-8%) and SLTL (-7%).

Foreign investors turned net sellers with low participation and recorded a net foreign outflow of LKR 90.4Mn. Accordingly, SUN, TKYO.X and LIOC were the top three shares to lead foreign inflow while NTB, DIAL and SAMP were the three counters recording the largest foreign outflow.

(First Capital Reserch)