CSE reverts to negative territory proving Wednesday’s gain was aberration

The Colombo stock market yesterday reverted to negative territory proving Wednesday’s marginal rebound after two days of bear run was an aberration. 

The active S&P SL20 declined by 0.4% and the benchmark ASPI was almost flat. Turnover was Rs. 541.2 million involving 17.5 million shares. 

Asia Securities said following Wednesday’s brief respite, the indices closed in red, dragged by price declines in JKH (-2.3%), RCH (-2.0%), COMBX (-1.2%), and SUN (-1.0%). MELS (+14 points) and CTHR (+6 points) provided support for the ASPI while JKH (-15 points) and SAMP (-3 points) were the biggest laggards for the day. The breadth of the market was negative with 63 gainers and 80 price decliners. JKH (Rs. 132 million) led the market turnover. 

Foreigners recorded a net outflow of Rs. 71.3 million. Net foreign buying topped in HNB.N at Rs. 9.8 million and selling topped in JKH at Rs. 57.6 million.

First Capital said the broader market failed to sustain Wednesday’s gains as investor sentiment shifted to the bearish in the post midday as banking sector counters and index-heavy weights exerted a negative pressure on the index. Notably, JKH’s 2.3% price drop dragged down the index to close the day at 11,802 by losing 9 points. Additionally, SAMP, NDB and HAYL contributed to the index negatively. Retail investors and HNWIs refrained from active participation, with turnover plummeting by 32.4% from Wednesday in the absence of significant crossing transactions.

The Capital Goods sector contributed 32% to the turnover whilst Banking and Food, Beverage and Tobacco sectors jointly contributed 31% to the overall turnover. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Nations Trust Bank and CIC Holdings. Mixed interest was observed in Dipped Products, Hatton National Bank and Melstacorp whilst retail interest was noted in LOLC Finance, Browns Investments and LVL Energy Fund. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 1.34%. The share price of John Keells Holdings decreased by Rs. 4.50 to Rs. 194.50. The Banking sector was the second highest contributor to the market turnover (due to Nations Trust Bank and Hatton National Bank) whilst the sector index decreased by 0.32%. The share price of Nations Trust Bank lost one Rupee to Rs 124.00. The share price of Hatton National Bank closed flat at Rs. 195.25.

CIC Holdings and Dipped Products were also included amongst the top turnover contributors. The share price of CIC Holdings closed flat at Rs 70.50. The share price of Dipped Products closed flat at Rs. 35.50.