Losses in JKH drag down the market sharply

Sri Lanka, May 06 (Capital Leads) – Despite turnover increasing more than four times from the previous session, sharp losses in John Keells Holdings (JKH) driven by local selling dragged the overall market down to a six-and-half-year low today.

With a decline of 0.96 percent from the previous session, the broad market All Share Price Index (ASPI) lost 52.48 points to stand at 5,386.27 points, its lowest since December 05, 2012. Meanwhile, more liquid S&P SL20 Index edged down 30.75 points to reach 2,587.20 level, a loss of 1.17 percent.

Trading 1.4 mn shares off-board at LKR58.0 apiece, Cargo Boat Development witnessed the only off-board transaction today which contributed 18 percent to the day’s turnover. While the total number of shares traded reached 8.7 mn, the day’s turnover improved more than four times from Friday to stand at LKR441.4 mn (USD2.5 mn), nearly three-quarters of the YTD average daily turnover of LKR578.5 mn (USD3.3 mn).

John Keells Holdings (JKH) witnessed local selling today to lead the turnover generation with 41 percent of contribution as the stock plunged 3.79 percent in value while Hemas Holdings (HHL) amid foreign selling dropped 0.69 percent to make up 22 percent of the day’s turnover.

As a result, the sector of Diversified Holdings made the highest sector-wise contribution of 65 percent today, followed by 22 percent from Land and Property stocks.

Extending the YTD net foreign outflow to LKR4.4 mn (USD25.1 mn), the foreigners sold shares worth a net LKR75.2 mn (USD0.4 mn) today as net foreign selling continued for the second consecutive session.

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.

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