Engineering & Capital Goods News

Record-setter ASPI takes a breather; turnover robust at Rs. 11.4 b



  • 14-day winning streak of benchmark index ends after Monday’s peak
  • Brokers welcome correction and profit taking, critics claim signs of bubble bursting 
  • Foreigners continue to exit, YTD net selling tops Rs. 2 b
  • LOLC Holdings moves up to third most valuable listed entity

The record-setter benchmark All Share Price Index (ASPI) yesterday took a ‘breather,’ losing over 113 points or 1.4% but investor activity remained robust with third day of over Rs. 10 billion turnover. The Colombo stock market which rose to its all-time high in terms of the ASPI on Monday, saw for some a ‘welcome’ correction and profit taking’ and others ‘eventuality’ warning it was a sign of bubble bursting. 

The ASPI mid-day fell much sharper but fresh buying helped to erase a part of the loss. The more active S&PSL20 Index remained upward gaining by over 55 points or near 2%. 

Market participants were heartened by the robust activity though as manifested by Rs. 11.4 billion turnover, falling short by Rs. 600 million to make it the third day of Rs. 12 billion figure.

LOLC Holdings has moved up to being the third most valuable stock with a value of Rs. 111.9 billion sending DIST to fourth place.  The climb was on Monday when the share price LOLC Holdings moved up by Rs. 38.50 (16.98%) to close at Rs. 265.25. Yesterday however LOLC share price dipped Rs. 29.75 or 11% to Rs. 235.50 yet remained secure at number three. 

JKH moved to the top position though its price was down by one rupee to Rs. 160.25 whilst CTC which saw a Rs. 14.50 dip or 1.3% was second.

First Capital said the 14-day winning streak was defeated reverting the direction of the market to negative predominantly, due to profit-taking by retailers. 

“The index moved downwards during the early hour of trading, thereafter experienced a short-lived bounce-back and hit its second bottom during mid-day. Later the market witnessed a stagnant movement, followed by another steep downtrend, and closing at 7,809 losing 114 points,” First Capital added. 

It said the Banking sector led the turnover for the session followed by the Capital Goods sector making a combined contribution of 47%. 

NDB said the ASPI closed in red as a result of price losses in counters such as LOLC Holdings, Commercial Leasing & Finance and Lanka Orix Finance.

It said high net worth and institutional investor participation was noted in Commercial Bank, Hatton National Bank and Dialog Axiata. Mixed interest was observed in John Keells Holdings, Tokyo Cement Company non-voting and Hayleys, whilst retail interest was noted in Browns Investments, Access Engineering and Expolanka Holdings.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank and Commercial Bank), whilst the sector index gained 7.54%. The share price of Hatton National Bank recorded a gain of Rs 6.50 (4.91%) closing at Rs. 139.00 whilst foreign holdings decreased by 1,948,966 shares. The share price of Commercial Bank appreciated by Rs. 7.50 (8.46%) to close at Rs. 96.20.

Capital Goods sector was the second highest contributor to the market turnover (due to Access Engineering), whilst the sector index decreased by 1.71%. The share price of Access Engineering gained Rs. 0.60 (2.01%) to close at Rs. 30.50. Browns Investments and Expolanka Holdings were also included amongst the top turnover contributors. 

Furthermore, the share price of Browns Investments decreased by Rs. 0.40 (5.48%) to close at Rs. 6.90, whilst the share price of Expolanka Holdings moved down by Rs. 3.80 (7.06%) to close at Rs. 50.

Foreigners continued to exit the Colombo Bourse with Rs. 536 million worth net selling yesterday bringing the year to date to over Rs. 2.2 billion. First Capital said yesterday’s was the highest net foreign outflow after nearly 14 weeks.

Asia Securities said estimated net foreign buying topped in HAYL at Rs. 22.8 million and net foreign selling topped in HNB at Rs. 271 million. 

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