Bearish run persists at CSE

The bearish run at the Colombo stock market continued with both indices dipping amidst waning turnover and investor activity due to concerns over macro issues.

Asia Securities said the indices ended lower in a lacklustre trading session while turnover for the day stood at Rs. 694 million (previous session Rs. 745 million).

Active counters EXPO (-1.6%), LOFC (-2.8%), LIOC (-1.2%), BIL (-1.4%), and HAYL (-1.0%) settled with losses while MGT (+6.3%), CICX (+6.4%), CICN (+1.8%), and SUN (+3.5%) ended in positive territory. EXPO recorded the highest turnover for the session at Rs. 98 million, followed by MGT (Rs. 74 million), and HAYL (Rs. 43 million). The ASPI oscillated within the range of 7,630-7,650 throughout the session while the S&P SL20 index trended downwards amid recording low retail and HNI activity. Overall, 65 stocks ended higher while 94 closed in red.

Asia also said foreigners recorded a net outflow of Rs. 20.9 million while their participation declined to 6.7% of turnover (previous day 16.3%). Net foreign buying topped in CFLB at Rs. 1.1 million and selling topped in MGT at Rs. 8.5 million.

First Capital said with persistent profit booking the bourse recorded losses for the third straight session amidst ultra-thin volumes while investors took side-lines waiting for a positive sentiment. Index opened with an upsurge and continued to take a sideways drift through the session.

However, towards the latter part of the session index tumbled down sharply with mounting selling pressure in counters such as COMB and EXPO and closed for the day at 7,630 losing nine points. Moreover, turnover plunged to a near two-week low and recorded at Rs. 693.9 million (down 32% from monthly average turnover of Rs. 1 billion) and was led by a 27% contribution from the food, beverage and tobacco sector. Foreign investors dominated with net selling amounting to Rs. 56.9 million, breaking the buying spree of eight-days.

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp. Mixed interest was observed in Expolanka Holdings, Hayleys Fabric and Hayleys whilst retail interest was noted in EML Consultants, Browns Investments and LOLC Finance.

Food, beverage and tobacco sector was the top contributor to the market turnover whilst the sector index edged down by 0.02%.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index decreased by 1.59%. The share price of Expolanka Holdings decreased by Rs 2.75 (1.59%) to close at Rs. 170.25.

Hayleys Fabric, Hayleys, Lanka IOC and CIC Holdings nonvoting were also included amongst the top turnover contributors. The share price of Hayleys Fabric gained Rs. 2 (6.25%) to close at Rs. 34. The share price of Hayleys moved down by 70 cents to close at Rs. 71.60. The share price of Lanka IOC recorded a loss of one Rupee (1.20%) to close at Rs. 82.20. The share price of CIC Holdings nonvoting appreciated by Rs. 1.80 (6.38%) to close at Rs. 30.