CSE opens fresh week negatively; foreigners dominate trading

The Colombo stock market began a fresh week on a negative note as overall investor interest remained beleaguered. 

The active S&P SL20 was down by 1.4% and the benchmark ASPI by 0.8%. Turnover was Rs. 1.15 billion involving 31.1 million shares. Trading was dominated by foreign investors accounting for 60% of the turnover.

Asia Securities said the indices moved downwards mainly due to price declines in banking stocks and primary dealers. CALT (-4.0%), FCT (-1.2%), CFVF (-1.7%), COMBN (-4.3%), COMBX (-2.1%), PABC (-3.2%), SAMP (-2.5%), NDB (-1.5%), and DFCC (-2.7%) closed in red while LHCL (+6.6%), SLTL (+1.5%), AEL (+1.1%), CARG (+1.4%), and CCS (+1.1%) recorded price gains in an otherwise subdued session. COMBN (-23 points), SAMP (-13 points), and MELS (-7 points) ended as the biggest laggards on the ASPI. Overall, 47 stocks ended higher while 129 settled with losses. 

Turnover was led by JKH (Rs. 325 m), SPEN (Rs. 207 m), and CTHR (Rs. 90 m).

Foreigners recorded a net inflow of Rs. 27.1 m. Net foreign buying topped in JKH at Rs. 33 m and selling topped in COMB.N at Rs. 15.3 m.

First Capital said the market experienced a continuous downward trajectory during the day, influenced by the uncertainties around the impending debt restructuring process and the upcoming budget. The index concluded in the negative territory at 10,722, marking a loss of 91 points. Investor interest was primarily centred on index-heavyweight stocks, whilst treasury shares witnessed evident profit taking amidst declining yields. 

NDB Securities said high net worth and institutional investor participation was noted in Aitken Spence, C T Holdings and John Keells Holdings. Mixed interest was observed in Teejay Lanka, Capital Alliance and First Capital Treasuries whilst retail interest was noted in Eden Hotel Lanka rights, Marawila Resorts and Browns Investments.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Aitken Spence) whilst the sector index lost 0.27%. The share price of John Keells Holdings closed flat at Rs. 193. The share price of Aitken Spence gained by one Rupee to Rs. 131.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Capital Alliance) whilst the sector index edged down by 0.08%. The share price of Capital Alliance declined by Rs. 2.60 to Rs. 62.50. 

C T Holdings and Teejay Lanka were also included amongst the top turnover contributors. The share price of C T Holdings moved up by Rs. 6.75 to Rs. 244. The share price of Teejay Lanka recorded a gain of 20 cents to Rs. 34.40.