CSE turns negative proving Wednesday’s gain was temporary

The Colombo stock market yesterday reverted to negative mode proving that Wednesday’s positive closing after three bearish sessions was short-lived. 

The active S&P SL20 dipped by 1.65% and the benchmark ASPI was down by 1%. Turnover was low at Rs. 2.4 billion involving 74.7 million shares. Foreigners continued to be bullish with net buying.  

Asia Securities said the indices closed in red dragged by price declines in banking sector stocks and heavyweights. 

COMBN (-3.1%), HNBN (-3.4%), PABC (-2.7%), SAMP (-1.2%), NDB (-3.7%), DFCC (-2.2%), SEYBN (-5.9%), SEYBX (-4.3%), and NTBN (-4.0%) ended lower while CALT (-1.9%), CFVF (-1.4%), and FCT (-4.2%) extended price losses for a second session. However, DIST (+4.3%) and hotel stocks SPEN (+3.1%), AHPL (+3.6%), CHOT (+9.3%), LHL (+9.9%), CONN (+8.6%), AHUN (+3.4%), and KHL (+3.1%) saw renewed buying interest during the session. 

COMBN (-22 points), HNBN (-19 points), and LOLC (-10 points) ended as the biggest laggards on the ASPI. The breadth of the market was negative with 82 price gainers and 120 decliners.

Turnover was led by CALT (Rs. 330 m), DIST (Rs. 169 m), and SPEN (Rs. 136 m). 

Foreigners recorded a net inflow of Rs. 72.1 m. Net foreign buying topped in SPEN at Rs. 90.7 m and selling topped in CFVF at Rs. 21.6 m.

First Capital said the Bourse witnessed a dull sentiment as the overall market displayed a drop losing 123 points resulted by the CBSL announcement, to maintain the SDFR and SLFR rates at their current levels of 11.0% and 12.0% at the meeting held on the 23 August, which the investors reacted by booking profits on Banking sector shares and Treasury counters. 

The Hotel sector continued to back the index positively as the country recorded its third consecutive month of tourist arrivals passing the 90,000 figure as at 20 August. 

On the back of the expected economic recovery towards the latter half of the year Consumer Services and Food, Beverage and Tobacco sectors witnessed revitalised interest as they managed to back the turnover exceptionally well. 

NDB Securities said high net worth and institutional investor participation was noted in Asian Hotels & Properties, Lanka IOC, and Chevron Lubricants. Mixed interest was observed in Capital Alliance, Distilleries and Aitken Spence whilst retail interest was noted in Marawila Resorts, Browns Investments and LOLC Finance. 

The Diversified Financials sector was the top contributor to the market turnover (due to Capital Alliance and First Capital Holdings) whilst the sector index lost 2.97%. The share price of Capital Alliance decreased by Rs. 1.60 to Rs. 82.40. The share price of First Capital Holdings declined by 80 cents to Rs. 55.40.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Distilleries) whilst the sector index edged down by 0.10%. The share price of Distilleries gained Rs. 1.10 to Rs. 26.80.

Aitken Spence and Chevron Lubricants were also included amongst the top turnover contributors. The share price of Aitken Spence moved up by Rs. 4.50 to Rs. 150. The share price of Chevron Lubricants recorded a loss of Rs. 1.70 to Rs. 93.00.

Separately Capital Alliance announced its dividend of Rs. 3.04 per share.