ASPI tumbles in the wake of heavy selling pressure in stock market

By Hiran H.Senewiratne

The CSE yesterday witnessed heavy selling pressure because local and foreign investors are worried about macroeconomic trends and the feasibility of the budgetary operations of companies in their wake.

Consequently the stock market was gripped by heightened volatility amid subdued investor activity and lower volumes. The ASPI tumbled during the early hours of the trading session and remained subdued throughout the day, though a few mild attempts at recovery were evident.

The ASPI concluded the day in the red at 283.97 points, while S and P SL20 fell by 87.4 points. Turnover stood at Rs 2.3 billion with two crossings. Those crossings were reported in JKH, which crossed four million shares to the tune of Rs 87.4 million and its shares traded at Rs 21.80 and HNB 100,000 shares crossed for Rs 32.3 million; its shares traded at Rs 323.

In the retail market top seven companies that mainly contributed to the turnover were, HNB Rs 197 million (614,000 shares traded), First Capital Rs 150 million (3.3 million share traded), Sampath Bank 150 million (1.2 million shares traded), Browns Investments Rs 107 million (13.4 million shares traded), Commercial Bank Rs 99.9 million (683,000 shares traded), JKH Rs 75.2 million (3.4 million shares traded) and Melstacope Rs 64.2 million (466,000 shares traded). During the day 135 million share volumes changed hands in 21000 transactions.

The banking sector exerted noteworthy adverse pressure on the ASPI, with HNB, NDB, Commercial Bank and DFCC emerging as the top negative contributors alongside Ceylinco Finance. SEMB Finance, National Lanka Finance were the top positive contributors to the ASPI.

Turnover also followed suit, dwindling to Rs. 2.3 billion from Rs. 3.5 billion registered in the previous session. This marks a 61.2 percent dip from the monthly average of Rs. 5.5 billion. It was the banking sector that dominated contributions to the turnover. This was followed by the Capital Goods and the Food, Beverage and Tobacco sectors, which produced a joint contribution of 26 percent.

Finally, foreign investors were net sellers amid dormant participation. The market registered a total outflow of Rs 5.4 million, market analysts said.

Yesterday the rupee closed at Rs 295.55/90 to the US dollar in the spot market, broadly flat from last Friday’s close of 295.65/90, dealers said, while bond yields were slightly up. The Central Bank announced a Rs140, 000 million Treasury bill issue on Tuesday and a Rs 27,500 million Treasury bond issue on Thursday.