CSE remains bearish amidst lacklustre investor interest

The Colombo stock market remained bearish amidst lacklustre investor interests leading to low volume.

Asia Securities said following a positive start to the session, the indices slipped into red territory on dragged by price losses in SAMP (-1.4%), AAIC (-1.6%), FCT (-1.9%), SEYBX (-2.2%), VONE (-1.0%), and CFIN (-1.8%). However, CALT (+1.3%), CFVF (+2.1%), and SLTL (+1.0%) recovered during the session following sharp losses recorded yesterday. 

Following the market’s closure, media reported that China’s Exim Bank has reached a preliminary agreement with Sri Lanka to restructure China-related debt, indicating a significant step forward in Sri Lanka’s ongoing debt restructuring, easing macro uncertainties to some extent in the market. 

The ASPI touched a high of 10,874 (+50 points) in early trading, however dropped to 10,799 (-25 points) before stabilising in the range of 10,810-10,840 in the second half of the session. Despite the ASPI’s downturn, the breadth of the market turned positive for the day with 84 price gainers and 76 decliners. SAMP (-7 points) came in as the biggest laggard on the ASPI while JKH (+5 points) ended as the major positive contributor to the index.

Market turnover dropped to Rs. 674 million (previous session-Rs. 1.0 b). Ahead of tomorrow’s Treasury bill auction, investors opted to stay on the sidelines and await interest rate cues following the Central Bank’s rate cut in the previous week’s monetary policy review meeting.

Foreigners recorded a net outflow of Rs. 75.2 million. Net foreign buying topped in MGT.N at Rs. 9 million and selling topped in SAMP.N at Rs. 27.7 million.

First Capital said following a three-session streak of price declines amounting to a 257-point, the ASPI closed the day flat at 10,818 as selling pressure eased down during the day. Retail investors remained cautious, with concerns over geopolitical issues, pending electricity price hike and the upcoming budget 2024. The Capital Goods sector displayed bearish sentiment after the Gazette notification relaxing the import ban on all items except vehicles. 

NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank. Mixed interest was observed in John Keells Holdings, Hayleys and Capital Alliance whilst retail interest was noted in Browns Investments, Royal Ceramics and UB Finance Company. 

The Banking sector was the top contributor to the market turnover (due to Sampath Bank) whilst the sector index lost 0.23%. The share price of Sampath Bank decreased by 90 cents to Rs. 65.20.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings, Hayleys and Royal Ceramics) whilst the sector index increased by 0.26%. 

The share price of John Keells Holdings gained Rs. 1.50 to Rs. 189.75. The share price of Hayleys edged up by 10 cents to Rs. 88.10. The share price of Royal Ceramics recorded a loss of 20 cents to Rs. 29.

Capital Alliance was also included amongst the top turnover contributors. The share price of Capital Alliance appreciated by 80 cents to Rs. 63.60.