CSE opens new week on a negative note

The Colombo stock market began a new week with bearish sentiments as some investors took profit forcing both indices to drop amidst low turnover. 

Acuity Stockbrokers said the Bourse ended on a negative note as the ASPI decreased by 0.20% or 10.38 points to close at 5,251.61 points, while the S&P SL20 Index also decreased by 0.13% or 3.11 points to close at 2,316.99.

Turnover decreased by 51.7% relative to last Friday to amount to Rs. 1.65 billion while the crossings for the day amounted to 26.0% of the total day’s turnover. 

Foreign investors recorded a net outflow of Rs. 0.340Bn over the day compared to a net outflow of Rs. 0.881Bn recorded on last Friday.

First Capital said profit-taking in banking counters broke the 4-day winning streak reverting the bourse to negative territory.  It said the index recorded a downward movement during the early hours of trading due to the strong selling pressure in selected banking counters and Dialog as it hit an intraday low of 5,242. Later volatile sideways movement was witnessed before experiencing a recovery within the last 30 minutes of trading and closed at 5,252 losing 10 points. 

Turnover was dominated by the banking counters contributing 52%, continuing the trend witnessed in the last week while being led by Commercial Bank. Moreover parcel trades made in COMB, Sampath and Chevron Lubricants boosted turnover, contributing 26%. 

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Dialog Axiata, Hatton National Bank and Hayleys.

High net worth and institutional investor participation was noted in Commercial Bank, John Keells Holdings and Sampath Bank.  Mixed interest was observed in Hatton National Bank, Dialog Axiata and DFCC Bank whilst retail interest was noted in First Capital Holdings and Hatton National Bank non voting. Furthermore, foreigners remained active closing as net sellers mainly due to foreign selling in Commercial Bank.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank, Hatton National Bank and Sampath Bank) whilst the sector index lost 0.53%. The share price of Commercial Bank decreased by Rs 0.50 (0.61%) closing at Rs 82.00 whilst foreign holdings decreased by 3,638,587 shares. The share price of Hatton National Bank moved down by Rs 1.80 (1.46%) to close at Rs 121.20 while the share price of Sampath Bank declined by Rs 0.50 (0.39%) to close at Rs 128.50.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 0.63%. The share price of John Keells Holdings gained Rs 3.00 (2.41%) to close at Rs 127.50.

Dialog Axiata was also included amongst the top turnover contributors. The share price of Dialog Axiata recorded a loss of Rs 0.10 (0.88%) to close at Rs 11.20.