CSE begins new week with sharp decline, poor volume

The Colombo stock market began a fresh week on a negative note with a sharp dip in indices amidst low trading volume.

The active S&P SL 20 was down by 2% and the benchmark ASPI by 1.4%. Turnover was Rs. 519 million involving 38.3 million shares.

S&P SL20 is down near 8% year to date whilst ASPI is hanging on a thread at 1% positive return and risking a shift to negative territory.

Asia Securities said the indices closed in red for a third consecutive session mainly due to price losses in DIAL (-1.0%), LIOC (-4.5%), EXPO (-2.7%), BIL (-2.0%), ACL (-3.5%), and LOLC (-3.3%).

COMBN (-14 points) came in as the biggest laggard on the ASPI, followed by SAMP (-12 points), and HNBN (-8 points). The breadth of the market was negative with 31 price gainers and 132 decliners.

Turnover was led by DIAL (Rs. 74 million), LIOC (Rs. 54 million), and EXPO (Rs. 52 million).

Asia also said foreigners recorded a net inflow of Rs. 20.7 million. Net foreign buying topped in DIAL at Rs. 10.8 million and selling topped in LGIL.N at Rs. 1.7 million.

First Capital said the bourse closed in the red zone as both the ASPI and S&P indexes declined by more than 1% during the day amidst profit taking and panic selling. The banking sector shares led the decline as it dragged the index further down due to the delay regarding the DDO strategies after a banking sector source disclosed that the plan will possibly include a maturity extension with a coupon reduction.

Furthermore, as the rupee appreciated against the greenback by 1.3% recording Rs. 299.1 price declines were observed on EXPO and other export-oriented companies.

On the flip side despite the negative sentiments, HHL contributed positively to the index performance due to the 4QFY23 earnings recording a stable performance as it was flat by -0.4% YoY.

NDB Securities said high net worth and institutional investor participation remained subdued for the day whilst mixed interest was observed in Dialog Axiata, Lanka IOC and Expolanka Holdings. Retail interest was noted in SMB Leasing, Browns Investments and Prime Lands Residencies.

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Browns Investments) whilst the sector index lost 0.52%. The share price of Browns Investments declined by 10 cents to Rs. 4.90.

The Capital Goods sector was the second highest contributor to the market turnover whilst the sector index decreased by 0.70%.

Dialog Axiata, Lanka IOC, Expolanka Holdings and Prime Lands Residencies were also included amongst the top turnover contributors. The share price of Dialog Axiata decreased by 10 cents to Rs. 10. The share price of Lanka IOC lost Rs. 6 (4.53%) to Rs. 126.50.

The share price of Expolanka Holdings moved down by Rs. 3.75 to Rs. 134.50. The share price of Prime Lands Residencies recorded a gain of 30 cents to Rs. 7.90.