Speculations on DDR weigh down on banks

Index reverted to red after continuous gains (gains of nearly 8% YTD) as rumours on domestic debt restructuring made rounds which dragged down banking sector counters.

Index hit a steep dip as soon as the market commenced as investors resorted to sell on banking sector counters and LOLC group counters.

Subsequently the index slightly picked up as investor interest re-emerged on SLTL on the back of potential privatization. Nevertheless, towards the end of the session ASPI dipped further hitting an intraday low of 9,084 before closing for the day at 9,100 losing 78 points with the negative contribution from COMB, SAMP and LOLC.

However, foreign activity remained buoyant with continued interest enticed on JKH. Accordingly, overall turnover was recorded at LKR 2.3 Bn (+19% cf. monthly average turnover of LKR 1.9 Bn) dominated by the Capital Goods sector (mainly JKH) with a contribution of 28% followed by the Transportation sector (mainly EXPO) which contributed 20%.

Foreign investors remained net buyers for the sixth consecutive day displaying high participation and recorded a net foreign inflow of LKR 463.5 Mn.

First Capital research