Colombo Bourse remains bearish as investors turn wary

The Colombo stock market remained bearish for the second consecutive day amidst moderate turnover with investors largely inactive.

The active S&P SL20 dipped by 0.6% and the benchmark ASPI by 0.5%. Turnover was Rs. 674.5 million involving 39.4 million shares.

Asia Securities said heading into the festive season saw a subdued market as investors continued to book profits in front-line stocks EXPO (-1.7%), SAMP (-1.6%), DIAL (-1.1%), CALT (-1.4%), and SUN (-1.3%). Despite the ASPI’s downward movement, there was a notable pick-up in buying interest in GLAS (+3.8%) and SCAP (+1.4%) during the session. The breadth of the market was negative with 53 price gainers and 94 decliners.

Turnover was primarily driven by off-board transactions, accounting for 44.2% of the total market turnover, with WIND (Rs. 165 m) and AGPL (Rs. 113 m) taking centre stage. 

Foreigners recorded a net outflow of Rs. 10.1 million. Net foreign buying topped in GLAS at Rs. 10.8 million and selling topped in SHAW at Rs. 12.2 million. 

First Capital said the bourse displayed a volatile yet downward trajectory during the day partly due to profit taking due to lack of investor confidence pruned by the VAT expenses which were confirmed in the Budget 2024 which subsequently dragged investor participation. 

Moreover, selected Banking sector counters with index heavy weights dragged the index as the market participants chose to book profits on the above stated shares. Despite the negative sentiment, retail savvy counters namely GLAS, TKYO and LIOC alongside SPEN representing the tourism sectors contributed positively but failed to keep up the momentum towards the latter part of the day as the index registered at 10,784 losing 53 points. Furthermore, the turnover was 25% lower than the monthly average and was mainly contributed by the Food, Beverage and Tobacco and Utility sectors for a joint contribution of 52%.

NDB Securities said crossings were witnessed in Windforce, Agarapatana Plantations, and John Keells Hotels, accounting for 44.2% of the turnover. Mixed interest was observed in Chevron Lubricants, Lanka Milk Foods and Hayleys Fabric whilst retail interest was noted in Browns Investments, Softlogic Capital and Industrial Asphalts. 

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Agarapatana Plantations and Lanka Milk Foods) whilst the sector index lost 1.32%. The share price of Agarapatana Plantations lost 10 cents to Rs. 7.60. The share price of Lanka Milk Foods appreciated by Rs. 2 to Rs. 233.25.

The Utilities sector was the second highest contributor to the market turnover (due to Windforce) whilst the sector index edged down by 0.05%. The share price of Windforce increased by 20 cents to 19.20.

John Keells Holdings and Chevron Lubricants were also included amongst the top turnover contributors. The share price of John Keells Holdings closed flat at Rs. 192.75. The share price of Chevron Lubricants recorded a gain of 80 cents to Rs. 92.