CSE remains with bearish sentiments

The Colombo stock market remained bearish yesterday though turnover improved due to crossings.

The active S&P SL20 declined by 0.83% and the benchmark ASPI by 0.35%. Turnover was Rs. 1.03 billion involving 23.78 million shares.

First Capital said the bourse suffered another decline for the ninth consecutive session as investor sentiment was affected by political uncertainty in the country which led to panic selling. This resulted in the ASPI suffering from a decline of 38 points to close the day at 10,908.

The Banking sector counters, and blue-chip entities exerted negative pressure on the index as SAMP, COMB, JKH, CARG and MELS emerged as the top negative contributors to the index. The turnover stood at Rs. 1 billion on the back of two crossings, marking a 27.7% increase from the monthly average standing at Rs. 812.7 million. The Banking sector led the turnover with 55% while Capital Goods and Consumer Durables sectors jointly contributed 29% of the total turnover.

Foreign investors turned to net sellers, with a net outflow of Rs.25.6 million.

NDB Securities indices closed in red as a result of price losses in counters such as Sampath Bank, Commercial Bank and John Keells Holdings.

High net worth and institutional investor participation was noted in Hayleys, Sampath Bank and Teejay Lanka. Mixed interest was observed in Nations Trust Bank, Commercial Bank and Lanka IOC whilst retail interest was noted in Industrial Asphalts, Browns Investments and LOLC Finance.

Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank, Nations Trust Bank and Commercial Bank) whilst the sector index lost 1.33%. The share price of Sampath Bank decreased by Rs. 3 to close at Rs. 69.60. The share price of Nations Trust Bank recorded a loss of Rs. 2.50 to close at Rs. 110.25. The share price of Commercial Bank declined by 70 cents to close at Rs. 85.90.

The capital Goods sector was the second highest contributor to the market turnover (due to Hayleys) whilst the sector index decreased by 0.37%. The share price of Hayleys closed flat at Rs. 90. Teejay Lanka was also included amongst the top turnover contributors. The share price of Teejay Lanka moved up by 30 cents to close at Rs. 39.30.