Consecutive losses wipe off previous week gains at CSE; foreigners net buyers

The Colombo stock market suffered yet another negative day amidst lacklustre investor sentiment wiping off gains made in the previous week. 

The active S&P SL20 dipped by 1.3% and benchmark ASPI by 1%. Turnover was Rs. 920 million involving 56.8 million shares. So far in October, both indices have declined by over 6% though on a year to date basis they had offered positive returns – 25% as per ASPI and 13% as per S&P SL20.

Asia Securities said the Bourse closed in the red territory with a hefty loss for the second consecutive day.

The indices trended downwards mainly due to price losses in CFVF (-4.7%), CALT (-8.0%), FCT (-2.9%), TKYOX (-3.8%), LIOC (-1.5%), HAYL (-2.4%), and SAMP (-3.1%). However, VFIN (+2.7%), HOPL (+2.3%), HELA (+1.7%), and PINS (+1.6%) closed in green. SAMP (-16 points), COMBN (-13 points), and MELS (-9 points) came in as the biggest laggards on the ASPI. Turnover was led by JKH (Rs. 196 million), RIL (Rs. 163 million), and CFVF (Rs. 84 million).

Foreigners recorded a net inflow of Rs. 153.7 million. Net foreign buying topped in JKH at Rs. 139.5 million and selling topped in TKYO.X at Rs. 26.7 million.

First Capital said the Bourse closed in the red territory with a hefty loss for the second continuous session while almost completely wiping off the previous 3-session gains of 305 points up till 23 Monday, following the staff level approval for the 2nd tranche of the EFF of the IMF. 

The Index moved on a steep downtrend throughout the day as selling pressure intensified on banking counters as speculations on Capital Gain tax on Govt. securities from the upcoming budget made rounds. Meanwhile, Treasury counters too witnessed a bearish sentiment given the limited decline in auction yields. The index recorded a heavy loss of 117 points further aggravated by the negative contribution from heavyweights such as SAMP, COMB and HAYL while closing the day at 10,614 in the midst of overall dull participation and thin volumes.  NDB Securities said high net worth and institutional investor participation was noted in RIL Property, Browns Investments, and John Keells Holdings. Mixed interest was observed in Capital Alliance, Melstacorp and Tokyo Cement Company nonvoting whilst retail interest was noted in SMB Leasing, First Capital Holdings and LOLC Finance.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 0.36%. The share price of John Keells Holdings increased by 75 cents to Rs. 192.75.

The Diversified Financials sector was the second highest contributor to the market turnover (due to First Capital Holdings and Capital Alliance) whilst the sector index decreased by 2.27%. The share price of First Capital Holdings moved down by Rs. 2.20 to Rs. 45. The share price of Capital Alliance recorded a loss of Rs. 4.50 to Rs. 52.

RIL Property and Melstacorp were also included among the top turnover contributors. The share price of RIL Property lost 20 cents to Rs. 5.60. The share price of Melstacorp declined by Rs. 1.90 to Rs. 77.

Separately Chevron Lubricants announced its interim dividend of Rs. 4 per share.