CSE remains bearish

The Colombo stock market closed negatively despite a late rally after initial dip whilst foreigners remained net buyers.

Both indices closed 0.15% lower and turnover was Rs. 1.3 billion involving 54.5 million shares.

Asia Securities said the indices pared early losses to close marginally lower amidst low level of investor activity. The ASPI dropped to an intra-day low of 12,165 (-70 points) in the first hour of trading and moved in the range of 12,170 levels before staging a late recovery to 12,216 (-18 points).

CTC (-7 points) ended as the biggest laggard on the ASPI. The breadth of the market was negative with 42 price gainers and 146 decliners.

Turnover was led by JKH (Rs. 271mn) and LIOC (Rs. 158mn). Crossings accounted for 24.3% of turnover with 4 crossings recorded in JKH (Rs. 186.3mn), 2 crossings in LIOC (Rs. 107.9mn) and 1 crossing in HHL (Rs. 22.0mn).

Asia also said foreigners recorded a net inflow of Rs. 97.5mn. Net foreign buying topped in JKH at Rs. 162.4mn and selling topped in HHL at Rs. 44.0mn.

First Capital said the market saw negative sentiment and slow activity at the beginning of the day, gradually experiencing increased momentum and positive investor sentiment after mid-day. The ASPI closed at 12,217, exhibiting a 0.15% decrease from the previous day reflecting the downward trends of the past few days, to which the most significant negative contributors were CTC, DIAL, and LIOC. In contrast, JKH, LOLC, CCS, ASPH, and CFIN were the dominant positive contributors to the index, where JKH and LOLC led the way. Increased buying activity began by mid-day, where investors displayed interest in a variety of sectors, notably the capital goods, banking, food, beverage and tobacco sectors, while interest in HNW firms remained low. 

Turnover saw an increase, reflecting positive sentiment in the market in the second half of the day. The capital goods sector led turnover at 35%, followed by the food, beverage and tobacco and energy sectors jointly contributing to 26% of overall turnover. There was a net foreign inflow signalling interest in local investments. The market overall experienced a day of gentle gains towards the latter part of the day, signalling a slight recovery from negative investor sentiment.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Lanka IOC and Hemas Holdings. Mixed interest was observed in Browns Investments, Sampath Bank and LOLC Finance whilst retail interest was noted in LVL Energy Fund rights, Renuka Agri Foods rights and Marawila Resorts. 

The capital goods sector was the top contributor to the market turnover (due to John Keells Holdings and Hemas Holdings) whilst the sector index gained 0.28%. The share price of John Keells Holdings increased by one Rupee to Rs. 207. The share price of Hemas Holdings closed flat at Rs 88.50.

The food, beverage and tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index edged up by 0.02%. The share price of Browns Investments closed flat at Rs. 6.30.

Lanka IOC and Sampath Bank were also included amongst the top turnover contributors. The share price of Lanka IOC lost Rs. 1.75 to Rs. 130. The share price of Sampath Bank declined by 20 cents to Rs. 77.80.