Stock market falls 6.5% wiping out Rs 245bn


COLOMBO – Sri Lanka stocks plunged 6.5% Tuesday (2) wiping out Rs 245 billion from stock values after making steep gains over several weeks on the back of low interest rates and strong earnings in some firms, brokers said.

Trading was halted twice as falling index hit circuit breakers. “We are coming off from a 30% rise in a month,” Dumith Fernando, Chairman Asia Securities said.

“A lot f people will take profit and take off some of their margins. My view is that fundamental valuations for many good shares are still intact.

“The earnings for coming quarters are strong for many of them. I am not surprised to see profit taking on the back of the rapid rise in recent months. This should create another buying opportunity.

The Colombo Stock Exchange halted trading at 1331 for 30 minutes after the S&P 20 Index fell below 5%.

Shortly after re-opening the S&P 20 Index fell below 7.75% triggering a second circuit breaker 1417 hours.

The benchmark All Share Index closed 6.56% or 561.75 points down close at 8,005.32 for the day with the market rallying in the last few minutes.

The market closed at 1430 with the S&P 20 Index recovering to 6.25 or 215.57 points to close at 3,224.11.

Colombo stocks saw the biggest intra-day fall, First Capital said in a note to clients.

Market turnover was Rs 6.9 billion with 10 stocks making gains and 222 making losses.

Net foreign sales were Rs 179 million.

LOLC Holdings fell Rs 37.25 to close Rs 466.50 a share contributing most for the ASPI fall.

LOLC Development Finance, a part of LOLC holdings, fell Rs 1.75 to Rs 103.25 a share.

John Keells Holdings fell Rs 12.75 to close at Rs 155.75, with a market capital of Rs 205.4 billion.

Browns Investments, closed 30 cents down at Rs 6.40 a share while its parent Brown and Company fell Rs 20.25 to close at Rs 199.75.

Vallibel One, controlled by Dhammika Perera closed 17.43% or  Rs 14.00 down at Rs 66.30 with Rs 72 billion of market capitalization. LB Finance fell Rs 42.00 to close at Rs 258.00.

Hayleys Plc, fell Rs 30.25 to close at Rs 711.25 a share with key subsidiaries Dipped Products falling Rs 75.75 to close at Rs 613.25 and Haycarb Plc falling Rs 125.50 to close at Rs 1,060.25.

The Kingsbury Plc another subsidiary of Hayleys group closed 20 cents down at Rs 12.50.

Hatton National Bank closed Rs 11.75 down at Rs 139.00, Commercial Bank of Ceylon fell Rs 6.40 to close at Rs 89.90, DFCC Bank closed Rs 5.90 down at Rs 66.00 and Sampath bank closed Rs 14.75 down at Rs 180.50.

Nations trust bank fell Rs 2.70 to close at Rs 60.40 and Seylan Bank fell Rs 3.60 to close at Rs 52.90, while Pan Asia Banking Corporation fell Rs 1.60 to close at  Rs 18.40.

Central Finance Company fell Rs 15.00 to close at Rs 110.50, Alliance Finance Company fell Rs 2.40 to close at Rs 54.10 and Citizens Development Business Finance fell Rs 4.50 to close at Rs 115.25.

Sinhaputhra Finance closed 50 cents up at Rs 8.50 a share while Housing Development Finance fell Rs 4.20 to close at Rs 37.90 and Softlogic finance closed 50 cents down at Rs 11.50 a share.

Cargills Ceylon fell Rs 4.50 a share to close at Rs 235.75, Hemas Holdings fell Rs 4.20 to Rs 89.80, Distilleries Company fell Rs 1.60 to close at Rs 21.00 and Melstacorp fell Rs 3.80 a share to close at Rs 3.80.

In the hotel sector Eden Hotel Lanka closed Rs 1.00 down at Rs 11.50 and John Keels Hotels closed 30 cents down at Rs 10.80 a share while Sigiriya Village hotel closed Rs 2.30 down at Rs 37.00 rupees, Aitken Spence Hotel holdings fell Rs 2.10 to close at Rs 31.90.

Ceylon Tobacco Company fell Rs 24.25 to close at Rs 1,095.50 while Ceylon Cold stores closed Rs 20.25 down at Rs 685.75 rupees.

Carson Cumberbatch fell Rs 57.25 to close at Rs 304.00 while Access Engineering fell Rs 2.20 to close at Rs 26.20.

Nestle Lanka closed Rs 61.00 down at Rs 1,235.25 and Aitken Spence Plc closed Rs 5.00 down at Rs 64.60.

Sri Lanka Telecom closed Rs 1.60 down at Rs 35.90, Dialog Axiata closed 30 cents down at Rs 12.30, while Richard Pieris Company closed Rs 1.10 down at Rs 14.90.

EB Creasy and Company fell Rs 517.50 to close at Rs 5,613.75, while Royal Ceramic Lanka closed 63.25% down at Rs 319.75 and Lanka Ceramic closed Rs 8.50 down at Rs 177.00.

The Capital Goods Industry the most active, fell 9.43% and Diversified Financial Industry, which was also active fell 7.1%.

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