CSE turns negative

The Colombo stock market yesterday failed to sustain the bullish sentiments experienced in recent days as bit of profit taking saw indices slip as foreigners remained net sellers. 

Acuity Stockbrokers said the Bourse ended on a negative note as the ASPI decreased by 0.11% or 5.70 points to close at 5,099.42 points, while the S&P SL20 Index also decreased by 0.31% or 6.74 points to close at 2,171.43.

Turnover decreased by 22.6% relative to Monday to Rs. 0.80 billion while the crossings for the day amounted to 7.0% of the day’s total turnover. 

Foreign investors recorded a net outflow of Rs. 0.18 billion over the day compared to a net outflow of Rs. 0.09 billion recorded on Monday.

First Capital said Colombo bourse failed to eke a gain to retain the positive sentiment due to the lack of participation from the HNWIs and institutional investors to absorb the selling pressure of retailers. 

“Index recorded a gradual downtrend since the beginning of the session and closed at 5,099 with a dip of 6 points,” it said. 

Turnover was ruled by the Banking counters amounting to 45% of the total with HNB and COMB being the leading contributors. Foreign investors continued to be net sellers while recording moderate participation, First Capital added.

NDB Securities said the ASPI edged down as a result of price losses in counters such as Dialog Axiata, Ceylon Cold Stores and Commercial Bank.

High net worth and institutional investor participation was noted in Nation’s Trust Bank and Hatton National Bank. Mixed interest was observed in Commercial Bank and Dialog Axiata, whilst retail interest was noted in Tokyo Cement Company non-voting and First Capital Holdings. 

Furthermore, foreigners remained active closing as net sellers mainly due to foreign selling in Hatton National Bank.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Commercial Bank and Nations Trust Bank), whilst the sector index edged down by 0.07%. The share price of Hatton National Bank decreased by Rs. 0.50 (0.45%) closing at Rs. 110.70 whilst foreign holdings decreased by 830,023 shares. 

The share price of Commercial Bank lost Rs. 0.80 (1.07%) to close at Rs. 74.00 while the share price of Nations Trust Bank closed flat at Rs. 63.00.

Materials sector was the second highest contributor to the market turnover (due to Tokyo Cement Company non-voting), whilst the sector index increased by 0.56%. The share price of Tokyo Cement Company non-voting recorded a loss of Rs. 0.10 (0.31%) to close at Rs. 32.00.

John Keells Holdings was also included amongst the top turnover contributors. The share price of John Keells Holdings edged down by Rs. 0.10 (0.09%) to close at Rs. 111.90.