Negative sentiment persists amidst thin volumes

Index remained volatile and continued its downward trend since the previous session and closed the day at 9,527 losing 77 points.

Investors remained on the sidelines and resorted to book profits amidst thin trading volumes in the market. LIOC was amongst the top contributors to the negative sentiment following the press release from the minister of a possible downward adjustment in fuel prices owing to a decline in global fuel prices.

The banking counter showcased negative sentiment in the market due to restructuring concerns and treasury counters displayed active investor participation following the readjustment of bond and bill yield. SLTL, LHCL and ECL remained the top gainers for the day as the treasury decided to divest major stakes of those counters. Market turnover was recorded at a moderate level of LKR 1.5Bn (-20% cf. monthly average turnover of LKR 1.9Bn) contributed by the Telecommunication Services sector (28%) and Diversified Financial sector (15%).

First Capital Research