CSE begins crucial September negatively

• ASPI slips to six-month low; S&P SL extends YTD dip

The Colombo stock market yesterday began the new and decisive month of September from where it ended August – negatively largely due to the uncertainty over the outcome of the presidential election in 18 days.

The benchmark ASPI fell by 1.4% to languish at a six-month low and the active S&P SL20 by 1.7% extending its year-to-date negative return to over 2%. Turnover was Rs. 615.7 million involving 30.4 million shares.

In August, the ASPI was down by 4.7% and S&P SL20 by 6.3% increasing the dip since the end June to 11% and 15% respectively.

Asia Securities said the indices commenced the week in red dragged by price losses in banking sector counters COMBN (-2.2%), HNBN (-1.8%), HNBX (-3.5%), SAMP (-1.7%) and NTBN (-1.4%) while heavyweights LOLC (-3.7%), HAYL (-2.1%) and JKH (-1.0%) also saw price losses during the session.

COMBN (-13 points), LOLC (-10 points) and HNBN (-9 points) ended as the biggest laggards on the ASPI. The breadth of the market remained negative with 24 price gainers and 153 decliners.

Turnover was led by JKH (Rs. 95 million) and HAYL (Rs. 61 million).

Foreigners recorded a net outflow of Rs. 21.9 million. Net foreign buying topped in TAFL.N at Rs. 0.9 million and selling topped in HNB.N at Rs. 10.7 million.

First Capital said the Colombo Bourse closed in red for the 11th continuous session owing to the lingering uncertainties surrounding the political environment in the nation while failing to recover losses since the beginning of the previous week which collectively amounted to 642 points. The ASPI experienced a continuous downtrend throughout the session, losing 150 points to close the day at 10,720. Amidst the escalated selling spree, COMB, LOLC, SAMP, HNB and JKH emerged as the top negative contributors to the index. Turnover marked a 26.6% decrease from the monthly average amidst improved participation of the retail investors. The Capital Goods sector alone contributed 34% to the total market turnover, whilst Banking and Food, Beverage and Tobacco sectors jointly contributed 32% to the total turnover.

NDB Securities said high net worth and institutional investor participation was noted in Hayleys, Ceylon Grain Elevators and Hatton National Bank. Mixed interest was observed in John

Keells Holdings, Commercial Bank and Sampath Bank whilst retail interest was noted in LOLC Finance, Browns Investments and SMB Leasing.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index lost 1.23%. The share price of John Keells Holdings decreased by Rs. 1.75 to Rs. 167.50. The share price of Hayleys lost Rs. 1.90 to Rs. 88.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank and Sampath Bank) whilst the sector index decreased by 1.78%. The share price of Commercial Bank recorded a loss of Rs. 1.90 to Rs. 84.70. The share price of Sampath Bank declined by Rs. 1.20 to Rs. 69.

Ceylon Grain Elevators was also included amongst the top turnover contributors and its share price moved down by Rs. 5 to Rs. 155.