CSE remains bearish

The Colombo stock market remained bearish with lacklustre investor interest persisting.

The active S&P SL20 index declined by 1.7% and the benchmark ASPI by 1.3%. Turnover was Rs. 1.87 billion involving 74 million shares.

Asia Securities said the indices closed in red for a third straight session as investors remained risk-averse, assessing the market direction ahead of the budget reading.

Front-line stocks EXPO (-2.8%), LIOC (-3.9%), CICX (-1.1%), CICN (-0.5%) and ACL (-0.9%) ended lower while activity in AGST picked up significantly during the session resulting in the stock generating the highest turnover for the day (Rs. 380 million) on the back of a sharp gain of 6.3%. The ASPI closed at a seven-week low at 8,866 (-118 points) and the S&P SL20 index ended 46 points lower at 2,674.

The breadth of the market closed weak with 50 stocks ending higher and 150 settling with losses.

Foreigners recorded a net inflow of Rs. 30.2 million while their participation declined to 2.1% of turnover (previous day 4.9%). Net foreign buying topped in ALUM at Rs. 13.5 million while selling topped in LDEV at Rs. 6.6 million.

First Capital said the Bourse closed in red for the third straight session as selling pressure from retail investors escalated especially on retail favourite LIOC following the fuel price reduction on Monday.

The index sharply regressed initially and continued to see-saw from green to red with sizable volatility as profit booking intensified in heavy weights before closing for the day at 8,866, losing 118 points. However, investor interest clustered on companies engaged in the fertiliser business with AGST leading the turnover.

NDB Securities said high net worth and institutional investor participation was noted in Lanka Walltiles, Expolanka Holdings and John Keells Holdings. Mixed interest was observed in Agstar, Lanka IOC and CIC Holdings nonvoting whilst retail interest was noted in SMB Leasing nonvoting, Browns Investments and LOLC Finance.

Materials sector was the top contributor to the market turnover (due to Agstar and CIC Holdings nonvoting) whilst the sector index lost 0.64%. The share price of Agstar increased by Rs. 1.20 (6.28%) to close at Rs. 20.30. The share price of CIC Holdings nonvoting moved down by 80 cents (1.07%) to close at Rs. 73.70.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index decreased by 3.81%. The share price of Lanka IOC lost Rs. 8.75 (3.89%) to close at Rs. 216.

Lanka Walltiles and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Lanka Walltiles recorded a loss of Rs. 1.60 (2.23%) to close at Rs. 70.10. The share price of Expolanka Holdings declined by Rs. 4.50 (2.80%) to close at Rs. 156.25.