Sri Lanka, Apr 24 (Capital Leads) – Having been closed on Monday on account of the security situation of the country following the Easter Sunday bomb attacks, the Colombo Stock Exchange opened for trading yesterday with a delay of one hour. However, the market witnessed the sharpest one-day loss in more than seven years amid sharp declines in John Keells Holdings (JKH) and Ceylon Tobacco (CTC).
The broad market All Share Price Index (ASPI) dropped 203.77 points, its sharpest single-day loss since February 14, 2012, to stand at 5,402.58 points, 3.63 percent lower from the previous session. Meanwhile, more liquid S&P SL20 Index lost 119.36 points to reach 2,590.91 points, a decline of 4.40 percent.
While there were no off-board transactions in the market today, 13.0 mn shares changed hands in total. Meanwhile, the daily market turnover continued its upward trajectory to reach LKR226.9 mn (USD1.3 mn), less than half of the YTD average daily market turnover of LKR588.4 mn (USD3.4 mn).
Driven by significant foreign selling, John Keells Holdings (JKH) shed 7.70 percent in value as the stock with a contribution of 49 percent led the turnover generation. Cinnamon Grand Hotel, a flagship hotel owned by the conglomerate also came under attack as part of the bombings. Meanwhile, Ceylon Tobacco (CTC) lost 6.72 percent in value contributing to the overall downturn in the ASPI.
Furthermore, the sector of Diversified Holdings spearheaded the sectoral contribution to the turnover with 53 percent followed by 22 percent generated from Banks, Finance and Insurance stocks.
After four straight sessions of foreign inflow, the market witnessed net foreign selling today as overseas investors sold shares worth a net LKR39.6 mn (USD0.2 mn), extending the YTD net foreign outflow to LKR6.0 bn (USD34.5 mn).
Disclosure: I/We have no investments in the stocks mentioned in the above article and don’t intend to open any within the next 72 hours. I wrote this article for myself, and it expresses my opinion. I/We receive no compensation, nor do I/We have any business relationship with any companies whose stocks are mentioned in the article.