Bear run at CSE continues but turnover improves

The Colombo stock market’s bear run persisted yesterday as well with indices dipping sharply though turnover improved.

The active S&P SL20 declined by 1% and the benchmark ASPI by 0.9%. Turnover was Rs. 945 million involving 32.6 million shares.

Asia Securities said the indices remained in red territory mainly due to HNBN (-1.6%), EXPO (-1.7%), BIL (-1.9%), SAMP (-1.9%), NTBN (-3.6%), LOFC (-1.9%), and SCAP (-3.4%).

SAMP (-9 points) ended as the biggest laggard on the ASPI, followed by NDB (-8 points), and HNBN (-6 points). The breadth of the market was negative with 37 price gainers and 132 decliners.  

Turnover improved led by JKH (Rs. 220 million) and HNBN (Rs. 159 million) which recorded Rs. 93 million and Rs. 136 million worth of crossings respectively during the session.

Foreigners recorded a net inflow of Rs. 48.3 million. Net foreign buying topped in JKH at Rs. 21.4 million and selling topped in COMB.N at Rs. 1.7 million.

First Capital said the bourse deteriorated further, losing 83 points as profit-taking emerged in the banking sector after recording sizable price gains during the last 2 weeks.

Investor participation continued to remain low as retailers took a wait and see approach over Domestic debt optimisation plans. Moreover, buying interest continued on CTC which remained the top positive contributor to the ASPI following the announcement of the first interim dividend of Rs. 28.80 for 2023.

Although the index started on an uptrend, profit-taking on Banks further dampened the index below 8,900 level and led the market to close at 8,823, losing 83 points. On the other hand, turnover hit 2-week high (+18% cf. monthly average turnover of Rs. 801.4 million) as high net worth and Institutional investors’ participation continued on Blue chip companies and Banks. Meanwhile, off-board transactions of HNB and JKH jointly contributed 24% to the turnover, whilst the overall Banking and Capital Goods sectors contributed 31% and 29%, respectively.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank and John Keells Holdings. Mixed interest was observed in Commercial Bank, Lanka IOC and Expolanka Holdings whilst retail interest was noted in Browns Investments, SMB Leasing and LOLC Finance.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank and Commercial Bank) whilst the sector index lost 1.86%. The share price of Hatton National Bank lost Rs. 2 to Rs. 120. The share price of Commercial Bank moved down by 20 cents to Rs. 58.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.63%. The share price of John Keells Holdings closed flat at Rs. 139.50.

Lanka IOC and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Lanka IOC recorded a loss of 25 cents to Rs. 140. The share price of Expolanka Holdings declined by Rs. 2.50 to Rs. 146.50.