CSE suffers loss in August

The Colombo stock market suffered losses in August, saw the benchmark ASPI down by 2.4% and the active S&P SL20 by 5.4%.

In July ASPI and the S&P SL20 gained 20.6% and 22.0% respectively whilst recording an average daily turnover of Rs. 3.65 billion.

Daily average turnover in August was lower at Rs. 3.28 billion.

Asia Securities said the market closed in red for a fifth consecutive session on Thursday primarily due to price losses in banking counters (-3.3%), NTBN (-1.1%), DFCC (-2.1%), HNBN (-1.7%), and HNBX (-5.4%). Turnover came in at Rs. 1.7 billion (previous session-Rs. 1.6 billion) driven by SAMP (Rs. 28 million), TJL (Rs. 135 million), and AHPL (Rs. 120 million) as these stocks transacted sizeable block trades during the session.

Sectorally, banks, finance sector stocks PLC (-4.2%), FCT (-4.5%), CFVF (-1.2%), CFIN (-1.0%), VFIN (-1.8%), and LFIN (-2.6%) moved downwards, however significant buying interest was observed in GLAS (+4.8%), TJL (+1.5%), LIOC (+1.1%), HHL (+1.4%), MGT (+1.1%), and EXPO (+1.3%) during the session. The breadth of the market was neutral with 98 price gainers and 97 decliners. SAMP (-21 points) ended as the major laggard on the ASPI for the day.

Foreigners recorded a net outflow of Rs. 130.8 million while their participation increased to 8.0% of turnover (previous day 3.7%). Net foreign buying topped in HPL.N at Rs. 21.0 million ($ 65k) while net foreign selling topped in TJL.N at Rs. 94 million ($ 291k).

Crossings accounted for 18.1% of turnover led by SAMPN (Rs. 126 million; $ 390k), TJLN (Rs. 90.7 million; $ 281k), and AHPLN (Rs. 64.6 million; $ 200k). Market P/E was 5.91.

First Capital said bourse closed in the red zone for the fifth consecutive session influenced by month-end selling pressure predominantly on banks and index heavy-weights. ASPI experienced a day of mild volatility while continuing to experience losses, losing 51 points to conclude at 11,114. Notably, during the day’s trading, shares of SAMP, HNB, and JKH garnered considerable interest from local high-net-worth investors.

Simultaneously, the hotel sector experienced a bullish sentiment, with share prices rising in anticipation of the upcoming peak tourism season set to commence in September. Meanwhile, poultry based shares too witnessed activities with the expected dip in chicken prices after the lifting of the import ban on maize.

It added that market turnover continued to remain thin as it was recorded at Rs. 1.7 billion (-50% cf. monthly average turnover of Rs. 3.3 billion) amidst limited participation and continuous selling observed over the last few sessions while Banking sector (23%) and Capital Goods sector (17%) accounted for a joint contribution of 40%.

NDB Securities said indices closed in red as a result of price losses in counters such as Sampath Bank, Hatton National Bank and Hatton National Bank nonvoting with the turnover crossing Rs. 1.6 billion.

It added that high net worth and institutional investor participation was noted in Sampath Bank, Teejay Lanka and John Keells Holdings. Mixed interest was observed in CIC Holdings, Asian Hotels & Properties and Hayleys whilst retail interest was noted in SMB Leasing nonvoting, Browns Investments and The Kingsbury.

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

During the month the ASPI and the S&P SL20 lost 2.4% and 5.4% respectively whilst recording an average daily turnover of Rs. 3.28 billion.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank) whilst the sector index lost 1.68%. The share price of Sampath Bank decreased by Rs. 2.40 (3.31%) to close at Rs. 70.10.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings), whilst the sector index decreased by 0.30%. The share price of John Keells Holdings recorded a loss of Rs. 1.25 (0.69%) to close at Rs. 178.75.

Teejay Lanka, Asian Hotels & Properties and CIC Holdings were also included amongst the top turnover contributors. The share price of Teejay Lanka gained Rs. 0.50 (1.46%) to close at Rs. 34.80. The share price of Asian Hotels & Properties moved up by Rs. 0.30 (0.56%) to close at Rs. 54.10. The share price of CIC Holdings declined by Rs. 1.10 (1.55%) to close at Rs. 70.00.

It also added that Raigam Wayamba Salterns announced its dividend of Rs. 0.20 per share.