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Market tumbles as pressure on margin selling lingers

  • 26 Sep 2022
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Market commenced the week on a negative note with profit taking visible on selected stocks as investors cut their margin positions ahead of the month end. Meanwhile, Retail, Capital Goods and Materials sectors majorly pulled down the index whereas Plantation and Hotel sector counters witnessed an upsurge during the day.





As a result, index witnessed a steep fall since the beginning of the session and continued to descend and closed the day at 9,844, losing 121 points. Turnover improved to LKR 4.6Bn (+15% cf. monthly average turnover of LKR 4.0Bn) was largely led by Transportation sector (mainly EXPO) accounting for a contribution of 45%.



Meanwhile, net foreign buying of LKR 1.8Bn was enticed during the day supported by the off-board transaction of EXPO amounting to LKR 1.7Bn as the parent company SG holdings continued to buy back a sizeable quantity of the shares





Dull activity ahead as investors look for direction



The secondary bond market witnessed lackluster investor activity as investors remained on the sidelines awaiting direction on debt restructuring talks, and on policy direction from the monetary policy meeting scheduled for 06th October 2022.



Moreover, slight selling interest with ultra-thin volumes was visible on 01.07.32 maturity with yields between 29.55%-29.85%. Meanwhile, as per the CBSL calendar a tentative LKR 145.0Bn bond auction is scheduled for 29th September 2022, which is expected to be announced in the coming days.



Courtesy: First Capital Research

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