Stocks down amid profit-taking

• Benchmark ASPI falls 1.63% to close at 8,668.07 points
• S&P SL20 index gains 0.25% or 8.85 points to close at 3.514.18 points
• Turnover hits Rs.13.4bn; foreigners net sold Rs.2.3bn worth of stocks

The Colombo Stock Exchange (CSE) took a breather yesterday with profit-taking by investors, which resulted in the benchmark index to end in red.

The All Share Price Index (ASPI) fell 1.63 percent of 143.94 points to close at 8,668.07 points. The more liquid S&P SL20 index gained 0.25 percent or 8.85 points to close at 3.514.18 points.

The market turnover for the day was Rs.13.4 billion.

The stockbrokers said the share price losses in counters such as Expolanka and John Keells Holdings and LOLC Holdings, while the shares of banks were seen gaining.

Expolanka Holdings, a major freight forwarding player in the country controlled by Japan’s SG Holdings, saw its share closing Rs.5.40 or 9.66 percent down at Rs.5050, despite reporting earnings of Rs.4.5 billion for the quarter ended on December 31, 2020 (3Q21), up 15 percent from a year ago.

According to NDB Securities, high-net-worth and institutional investor participation was noted in Pan Asia Banking Corporation, Commercial Bank and Softlogic Holdings. Mixed interest was observed in LOLC Holdings, Browns Investments and Royal Ceramics, whilst retail interest was noted in Sampath Bank, Vallibel One and 
Expolanka Holdings. 

 Foreign participation in the market remained at subdued levels with foreigners closing as net sellers of shares worth of Rs.2.3 billion. The year-to-date foreign net outflow as of yesterday stood at Rs.8.4 billion.

“During the month, the ASPI and S&P SL20 gained 27.96 percent and 33.21 percent, respectively, whilst recording an average daily average turnover of Rs.10.32  billion,” NDB Securities said.

The market capitalisation was Rs.3.78 trillion, compared to Rs.2.96 trillion a month ago, an increase of 28 percent.

Trading halted following technical failure of a broker back office system provider

A trading halt was imposed on the market at 12:07 p.m. yesterday, following a technical failure of a broker back office system provider, which was brought to the attention of the Colombo Stock Exchange (CSE). 

The broker back office systems are operated by independent system vendors, who provide these directly to stockbroking firms. Although the failure did not impact the operating systems of the CSE itself, it affected 14 brokers’ ability to access the stock market, thereby impacting all of their investor clients. 

The CSE said the imposition of the halt was to ensure that a fair and orderly market is maintained, where a substantial majority of investors operating through all broker firms have equal access to participation. Regular trading was enabled at 12:45 p.m. immediately, as the system was restored and confirmed to the CSE.

The CSE said it would be calling for an immediate review of the system failure of the vendor in question, with a view to ensuring accelerated remediation of the causes that led to yesterday’s incident.