Selling pressure sends market down

The Sri Lankan market drifted down further yesterday triggered by high level of selling pressure. Moreover ASI is witnessing a steep fall to its major support level at 6,250 points reflecting a potential bounce back to the positive zone or another steep sell down. Interestingly, all the sectors in the bourse registered losses except for the telecommunication sector. ASI dropped significantly by 68.99 points (-1.1%) to close at 6,388.52 whereas liquid MPI dipped by 79.09 points (-1.36%) to end at 5,732.30.

The market turnover reached Rs 1.3bn.

Heavy level of turnover was displayed on Blue Chip counters such as Bukit Darah PLC (Rs 90.7mn), Dialog Telekom PLC (Rs 84.5mn) and John Keells Holdings Plc (Rs 66.4mn). Meanwhile HVA Foods Plc, Panasia Power Plc and Colombo Land & Development Plc attracted heavy investor participation. Foreign participation stood at 11.66% of the total market activity. At the end of the day foreign investors were the net sellers with a net foreign outflow of Rs 35.5mn.

Lanka Securities Research