“Index falters as Banking and Diversified Financials sectors dive low”

Index plunged to an intraday low of 9,442 soon into market opening as profit taking intensified during the day on banking and diversified financial counters weighing down on the ASPI.

Although ASPI displayed gradual recovery and remained stagnant during the latter part of the session, the bourse closed for the day at 9,491 losing 116 points. LIOC share price fell on the expectation of a drop in volumes, with the power and energy minister’s announcement on the decline in consumption of auto diesel and petrol by over 50% and 30% respectively.

Meanwhile, market turnover was recorded at a moderate level of LKR 2.1Bn (+6% cf. monthly average turnover of LKR 2.0Bn) largely led by several crossing transactions while Utilities sector (32%), Food, Beverage & Tobacco sector (17%), and the Capital Goods sector (16%) dominated the overall turnover. Moreover VLL.N (108.9Mn shares at LKR 6.0) and ATL (9.0Mn shares at LKR 12.20) witnessed a stake change of c.13% and c.5%, respectively through an off-board transaction.

VLL and MELS led overall turnover while VLL contributed LKR 655.1Mn (31%), and MELS contributed LKR 251Mn (12%). Meanwhile, VLL dominated the market volume with 109.19Mn shares (46%) while SEMB recorded the second largest volume of 61.41Mn shares (26%). Overall volume increased compared to the previous session and recorded at 238.8Mn. Top gainers for the day were MULL (+8%), BBH (+8%), RHL.X (+6%), MCPL (+6%), and CHOT (+5%). Meanwhile, top losers for the day were ASPH (-25%), CSF (-17%), CIT (-10%), CDB.X (-8%) and PALM (-7%).

Foreign investors remained net buyers amidst high participation and recorded a net foreign inflow of LKR 25.4Mn. Accordingly, JKH, MELS and TKYO.X were the top three shares to lead foreign inflow while DOCK, DIAL and NDB were the three counters recording the largest foreign outflow. Courtesy First Capital Research