ECONOMYNEXT – Sri Lanka stocks closed down 1.84 percent on Wednesday dragged by financials, as the market continued a pull-back, brokers said.
“We saw another huge decline in the market,” Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC, told EconomyNext.
“Buying interest is pretty weak.”
The broader ASPI closed down 1.84 percent, or 297.05 points, at 15,870.25; while the more liquid S&P SL20 Index closed down 1.40 percent, or 67.51 points, at 4,759.70.
Stocks fell amid relatively thin turnover, brokers said.
There was a turnover of 2.3 billion rupees in the session.
The indices steeply declined during the early morning trading followed by a bit of volatility before closing down.
“We are seeing a significant level of profitability in the banks. After the debt restructuring investors have been waiting for large dividends.”
“Since these (dividends) are announced and finished most of the investors are booking the profit.”
Banks saw an influx of investor interest following the finalization of debt restructuring in mid-December.
However, following the announcements of quarterly results and dividends, investor interest continues to move from financials.
“Banks are bringing the overall market down.”
Top negative contributors to the ASPI were Ceylinco Holdings (ended 7.4 percent weaker at 3,510.00), DFCC Bank (fell 5.1 at 108.00), HNB (down 1.8 percent at 310.00), Sampath Bank (closed down 1.9 percent at 118.50) and Commercial Bank (fell 1.9 percent at 142.75).
“80% of the turnover is driven by banks,” Mathew said.
The highest turnover was seen in banking stocks (982 million rupees) followed by capital goods (406 million rupees).
“Some margin selling can be seen. There is also panic selling in the market.”
HNB saw volumes of (228 million rupees) and John Keells Holdings (96 million rupees).
Sri Lanka’s HNB Finance is looking to raise 1.19 billion rupees in right issues to improve the capital adequacy ratio of the company.
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Sri Lanka’s HNB Finance to raise 1.19bn in right issues
Most active volumes were seen in Browns Investments at 11,663,173 (turnover 90,051,687.50 rupees), John Keells Holdings at 7,707,791 (turnover 161,936,527.40 rupees), Dialog Axiata at 7,263,682 (turnover 98,115,294.50 rupees) and National Lanka Finance at 5,138,377 (turnover 1,027,704.90 rupees).
There was a net foreign outflow of 109 million rupees.(Colombo/Mar04/2025)
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