CSE turns bearish

Friday, 27 January 2023 00:00 - - {{hitsCtrl.values.hits}}

The Colombo stock market turned bearish yesterday reflecting an apparent erratic behaviour whilst investor activity was subdued.

After a strong rebound on Wednesday, the Colombo bourse struggled yesterday though showing some gain in the last hours of trading.

It closed with S&P SL20 down by 0.3% and the ASPI by 0.1%. Turnover was only Rs. 1.2 billion involving just 41 million shares.

Asia Securities said having declined initially, the indices reversed losses in the second half of the session and closed marginally lower on Thursday.

Price gains in AAIC (+6.1%), SCAP (+4.8%), LOLC (+2.7%), LIOC (+0.7%), and NTBN (+4.3%) helped the ASPI to partly offset the losses recorded by EXPO (-2.4%), BIL (-1.4%), RCL (-2.6%), FCT (-1.9%), and CALT (-1.9%).

Turnover was led by LIOC (Rs. 270 million), AAIC (Rs. 147 million), and SCAP (Rs. 122 million). Following a 30-point gap-up, the ASPI reached an intra-day low of 8,892 (-46 points), however saw a steady recovery thereupon to close at 8,927 (-12 points). The breadth of the market was negative with 81 price gainers and 92 decliners. Asia also said foreigners recorded a net inflow of Rs. 30.9 million. Net foreign buying topped in JKH at Rs. 36.5 million and selling topped in MELS at Rs. 29.7 million. First Capital said the bourse closed broadly flat as the buying spree slowed down while investors took side lines waiting for quarter results of companies. As the market opened, the index moved on a steep decline hitting an intraday low of 8,891 as market participants booked profits after persistent rise in stock prices. However, by mid-day the index gradually recovered, led by LOLC and LIOC yet failed to recoup losses and closed in red with a narrow loss of 12 points. LOLC recorded the highest positive contribution to ASPI following its disclosure on divesting shares of AGST.

Softlogic company counters continued to witness gains during the day.

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp and Horana Plantations. Mixed interest was observed in Lanka IOC, Softlogic Life Insurance and Softlogic Capital whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting and Agstar. The insurance sector was the top contributor to the market turnover (due to Softlogic Life Insurance) whilst the sector index gained 0.57%. The share price of Softlogic Life Insurance gained Rs. 6.50 (6.06%) to close at Rs. 113.75.

The energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index increased by 0.82%. The share price of Lanka IOC increased by Rs. 1.50 (0.74%) to close at Rs. 203.50. Softlogic Capital, LOLC Holdings and Melstacorp were also included amongst the top turnover contributors. The share price of Softlogic Capital moved up by 70 cents (4.76%) to close at Rs. 15.40. The share price of LOLC Holdings recorded a gain of Rs. 12.25 (2.74%) to close at Rs. 459.50. The share price of Melstacorp appreciated by 20 cents to close at Rs. 51.10.