Broad market extends downbeat amid looming concerns

Bourse extended its streak of price declines for the third consecutive day as investors opted to remain on the sidelines amidst the looming concerns on the upcoming budget and the quarterly earnings of the corporates.

Although the index surged at the beginning of the session, negative sentiment outweighed the market and closed the day at a 3-month low of 10,647, losing 75 points. Notably, revitalized investor activities were observed on the major Banking counters (COMB and HNB) whilst Institutional investors’ and foreign investor participation centered on Blue chip companies, primarily JKH. Amidst the lingering macroeconomic uncertainties, investor interests reactivated on Defensive shares.

As retail participation slowed down, turnover skid below the LKR 1.0Bn mark and recorded at LKR 994.2 Mn (8% higher cf. monthly average turnover of LKR 917.4Mn) and was largely led by the Capital Goods sector with a contribution of 37%, out of which JKH solely contributed 19% through off-board transactions.

Foreign investors remained net buyers despite low participation recording a net foreign inflow of LKR 0.04 Mn. Accordingly, CARG, SCAP and RICH were the top three shares to lead foreign inflow while MELS, DIAL and COMB were the three counters recording the largest foreign outflow.

First Capital Research

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