CSE begins May with loss amidst high trading volume

The Colombo stock market began May with losses despite being positive in April and year to date whilst trading volume hit a recent high yesterday. 

The benchmark ASPI declined by over 9 points and the S&P SL20 by 14 points. Turnover was Rs. 3 billion involving 272.3 million shares. Market also saw net foreign selling. 

Asia Securities said after six sessions of upward momentum, the indices closed marginally lower on Thursday dragged by profit-taking in HNBN (-2.6%), NDB (-1.7%), VONE (-1.9%), BIL (-3.0%), and SAMP (-1.0%). Nevertheless, HAYL (+3.2%), RCL (+1.5%), CFIN (+2.0%), MGT (+2.5%), LALU (+3.8%), and AEL (+2.4%) supported the ASPI during the session. 

The ASPI initially touched a high of 12,421 (+67 points) before slipping into red in the second half of the session, eventually closing out at 12,354 (-9 points). HNBN (-16 points), BUKI (-8 points), and SAMP (-6 points) ended as the major laggards on the ASPI. The breadth of the market was negative with 90 price gainers and 105 decliners.

Turnover was led by HAYL (Rs. 417 m), JKH (Rs. 243 m), RCL (Rs. 157 m), and JINS (Rs. 117 m). Crossings accounted for 14.8% of turnover led by HAYL (Rs. 242.9 m) JINSN (Rs. 53 m) and MGTN (Rs. 48.8 m).

Foreigners recorded a net outflow of Rs. 93.2 million. Net foreign buying topped in COMB.N at Rs. 42.6 million and selling topped in DIAL at Rs. 52.1 million.

First Capital said the Colombo bourse commenced the trading day on a positive note, with bullish investor sentiment propelling it to an intra-day high of 12,421. However, market dynamics shifted post-midday, leading to a downtrend that saw the market closing at 12,354, down by 9 points from the previous day. 

Notably, the Banking sector counters, including HNB, SAMP, and NDB, exhibited reduced activity, contributing to the negative trend observed. Trading volumes reached the highest seen in four weeks backed by increased interest on penny stocks. HAYL dominated turnover, accounting for 13.6%, while JKH contributed 7.9%, particularly following its partnership announcement with Melco. The Capital Goods sector emerged as the leading contributor, comprising 34% of the turnover, followed closely by the combined contribution of the Diversified Financials and Materials sectors, which amounted to 29%. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Hayleys and Janashakthi Insurance. Mixed interest was observed in Royal Ceramics, Central Finance Company and CIC Holdings nonvoting whilst retail interest was noted in Nation Lanka Finance, SMB Leasing nonvoting and Browns Investments. 

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys, John Keells Holdings and Royal Ceramics) whilst the sector index gained 0.30%. The share price of Hayleys increased by Rs. 2.90 to Rs. 93.90. The share price of John Keells Holdings edged down by 25 cents to Rs. 209.25. The share price of Royal Ceramics moved up by 50 cents to Rs. 34.10.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Central Finance Company) whilst the sector index increased by 0.92%. The share price of Central Finance Company appreciated by Rs. 2.50 to Rs. 125.25. Janashakthi Insurance was also included amongst the top turnover contributors. The share price of Janashakthi Insurance recorded a gain of 30 cents to Rs. 53.50.