CSE begins new week on dismal note

The Colombo stock market began a fresh week on a dismal note with low multiple week low turnover and indices turning negative. 

The benchmark ASPI and active S&P SL20 declined by 0.1% and turnover was Rs. 1.8 billion involving 92 million shares. The market also saw net foreign outflow. 

Asia Securities said the market commenced the week on a low note with the indices closing in red amidst moderate retail and HNI activity. The subdued momentum in the market was primarily due to price declines in LMF (-2.2%), BIL (-1.5%), LOFC (-1.4%), HAYL (-0.9%) and JKH (-0.8%) while upward movement was seen in GLAS (+1.0%), HHL (+1.1%) and TAP (+6.0%). The breadth of the market was negative with 72 price gainers and 103 decliners.

Turnover was led by HHL (Rs. 366 million), GLAS (Rs. 89 million), and RCL (Rs. 75 million).

Asia also said foreigners recorded a net outflow of Rs. 199 million. Net foreign buying topped in TJL at Rs. 10.9 million and selling topped in HHL at Rs. 122.2 million.

First Capital said the bourse experienced a day of mixed sentiment and uncertainty overall. The market experienced a dull start at the beginning of the day, marking a slight recovery by mid-day with swinging activity, reflecting varied sentiment. The ASPI closed at 12,499 exhibiting a 0.16% decrease from the previous day reflecting the volatile environment of the market, to which the most significant contributors were CTHR, RCL, SPEN, HHL, and TJL, where CTHR and RCL led the way. 

In contrast JKH, BIL, and RICH were the top negative contributors to ASPI further reflecting the mixed sentiment of the market. Investor sentiment remained diverse, displaying interest in a variety of sectors, notably in blue-chip firms, and the Capital Goods sector, while the Banking sector experienced diminished interest. 

Turnover saw a significant decline falling to its lowest levels in the past three weeks, reflecting unpredictable market activity. The Capital Goods sector led turnover at 36%, followed by the Banking, Food, Beverage and Tobacco, and Materials sectors jointly contributing to 34% further reflecting the diversified and volatile interest of investors. 

The market overall saw a day of varied and uncertain investor sentiment, led by blue-chip firms and the Capital Goods sectors, First Capital added. 

NDB Securities said high net worth and institutional investor participation was noted in Hemas Holdings, Piramal Glass and Renuka Foods (Rights). Mixed interest was observed in Royal Ceramics, John Keells Holdings and Ambeon Capital whilst retail interest was noted in LOLC Finance, SMB Leasing and Browns Investments. 

The capital Goods sector was the top contributor to the market turnover (due to Hemas Holdings, Royal Ceramics and John Keells Holdings) whilst the sector index lost 0.55%. The share price of Hemas Holdings increased by one Rupee to Rs. 88. The share price of Royal Ceramics moved up by 50 cents to Rs. 36.90. The share price of John Keells Holdings recorded a loss of Rs. 1.75 to Rs. 207.

The Banking sector was the second highest contributor to the market turnover whilst the sector index decreased by 0.23%. Piramal Glass and Ambeon Capital were also included amongst the top turnover contributors. The share price of Piramal Glass gained by 30 cents to Rs. 29.30. The share price of Ambeon Capital appreciated by 80 cents to Rs. 14.20.