Sri Lanka, Sep 17 (Insights Equity) – Sri Lankan shares closed firm on Monday as Chevron Lubricants accounted for more than 70 percent of the day’s turnover. The stock plunged nearly 7 percent in value led by local selling as an industry report highlighted that the company was fast losing its market share to rivals.
ASPI ends marginally lower: The All Share Price Index (ASPI) edged down 2.77 points to close the day at 6,028.49 points, 0.05 percent weaker than the previous session, while S&P SL20, where largest and most liquid stocks are included, lost 9.49 points to close at 3,130.28 points, 0.3 percent weaker than last Friday.
With no crossings, turnover slumps: The day’s turnover slumped to LKR440.4 mn (USD2.7 mn), slightly more than half of the year-to-date average daily turnover of LKR796.8 mn (USD4.9 mn), as no crossings were recorded for the day.
Market snaps consecutive sessions of net foreign outflow: The market recorded a net foreign inflow for the first time today after three consecutive sessions of net foreign selling as foreigners bought stocks worth a net LKR162.4 mn (USD1.0 mn), contracting the year-to-date foreign outflow to LKR5.0 bn (USD30.3 mn).
LLUB makes up more than two thirds of day’s turnover: Accounting for 76 percent of the day’s turnover, Chevron Lubricants (LLUB) dropped close to 7 percent in value today.
Local investors offloaded the stock as the Lubricant Market Report published by Public Utilities Commission of Sri Lanka for the first quarter of 2018 highlighted that the company was fast losing its market share to rivals in a declining industry.
The manufacturing sector spearheaded the sector-wise contribution to the turnover, having generated more than three-quarters of the day’s turnover, followed by banks, finance and insurance stocks which contributed almost 9 percent.
Furthermore, SMB Leasing and Sunshine Holdings were amongst the highest gainers in the market today while LOLC Finance and Ambeon Capital were two of the most active stocks traded during the day.