CSE remains bearish

The Colombo stock market remained bearish with investor sentiment dampened though activity levels improved in comparison to Monday.

The active S&P SL2) declined by 0.85% and the benchmark ASPI by 0.68%. Turnover was Rs. 915.7 million after hitting a four month low of Rs. 494 million on Monday.

Asia Securities said the indices dropped for a second session as the investors maintained a “wait-and-see” approach following the CBSL’s decision to keep policy rates steady.

NDB (-1.3%), BIL (-1.6%), ALUM (-1.7%), NTBN (-2.0%), LOFC (-1.5%), and JKH (-1.0%) recorded price losses during the session. HNB (-8 points), JKH (-6 points) and COMB (-5 points) came in as the biggest laggards on the ASPI. Overall, 48 counters recorded price gains while 141 settled with losses.

Crossings accounted for 22.3% of turnover with 4 crossings recorded in SAMPN (Rs. 133mn), 2 crossings in NDB (Rs. 43mn) and 1 crossing in ALUM (Rs. 28.4mn).

Foreigners recorded a net inflow of Rs. 63.9mn. Net foreign buying topped in ACL at Rs. 42.9mn and selling topped in LALU at Rs. 10.3mn.

First Capital said the market experienced a bearish trend throughout the trading day, primarily due to lingering uncertainties within the country, albeit with a modest level of engagement observed from HNWIs, closing both indices in red. ASPI hit its intraday low at 12,214 before ending the day at 12,228 losing 83 points (c.-0.68%). Banking sector counters such as HNB, COMB, NDB, and SAMP, along with JKH, exerted a downward pull on the index while contributing to the turnover.

First Capital said low turnover signifies a decline in retail investor participation, with fewer than 10,000 trades executed during the day. The banking sector dominated turnover at 41%, with the Capital Goods and Food, Beverage and Tobacco sectors jointly contributing 31% to the overall turnover.

NDB Securities said high net worth and institutional investor participation were noted in Sampath Bank, National Development Bank and Alumex. Mixed interest was observed in ACL Cables, Vallibel One and Browns Investments whilst retail interest was noted in Cargills Bank, Industrial Asphalts and LOLC Finance. The Banking sector was the top contributor to the market turnover whilst the sector index lost 0.83%. The share price of Sampath Bank decreased by 40 cents to Rs. 77.80. The share price of the National Development Bank lost one Rupee to Rs. 78.

The Capital Goods sector was the second highest contributor to the market turnover whilst the sector index decreased by 0.82%. The share price of ACL Cables edged down by 10 cents to Rs. 86.90. The share price of Vallibel One recorded a gain of 30 cents to Rs. 54.40.

Browns Investments was also included among the top turnover contributors. The share price of Browns Investments declined by 10 cents to Rs. 6.30.