Stocks tumble further as turnover exceeds LKR2 bn

Sri Lanka, Mar 08 (Capital Leads) – With the main index posting another sharp decline today, the Colombo Stock Exchange (CSE) continued to hover around more-than-five-year low recorded last week as the day’s market turnover more than tripled from yesterday.   

The broad market All Share Price Index (ASPI) fell 30.10 points with a decline of 0.52 percent from yesterday to stand at 5,722.25 points, its lowest close since September 18, 2013. The more liquid S&P SL20 Index meanwhile, losing 23.09 points, reached 2,859.59 points at the end of the session, a decline of 0.80 percent.

Amid three crossings from Ceylinco Insurance (CINS), National Development Bank (NDB) and John Keells Holdings (JKH), the off-market negotiated settlements made up 26 percent of the day’s turnover. Market turnover more than tripled from yesterday to reach LKR2.0 bn (USD11.2 mn), well-above the YTD average daily turnover of LKR701.9 mn (USD3.9 mn).

Melstacorp (MELS) dropped 5.21 percent in value as the stock, driven by foreign selling, led the turnover generation with 48 percent of contribution to the turnover. Ceylinco Insurance (CINS), gaining 1.02 percent today, followed up with 21 percent as 0.2 mn of its shares traded off-board at LKR1,920.0 apiece.

The sector of Diversified Holdings spearheaded the sectoral contribution to the turnover with 50 percent ahead of Banks, Finance and Insurance stocks which made up 32 percent.

After four consecutive sessions of outflows, the market witnessed net foreign inflow today as the overseas investor interest in Ceylon Tobacco (CTC) outweighed the outflow from Melstacorp (MELS) and Royal Ceramics (RCL). Narrowing the YTD net foreign outflow to LKR5.9 bn (USD33.2 mn), net foreign inflow for the session reached LKR145.0 mn (USD0.8 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.

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