Downturn at CSE continues to 5th day

The downturn at the Colombo stock market continued for the fifth consecutive day despite turnover improving and net foreign inflow.

Asia Securities said the market maintained its broad-based downturn resulting in a 142-point decline (-1.3%) in the ASPI and a 43-point loss (-1.4%) in the S&P SL20.

It said from a technical viewpoint, the ASPI is currently above its upcoming support range of 10,500 - 10,600, approaching the oversold territory as indicated by the Relative Strength Index (RSI).

Market turnover amounted to Rs. 1.3 billion (previous session Rs. 674 million) led by FCT (Rs. 386 million) and CFVF (Rs. 138 million).

“The market continued its downward momentum for a fifth consecutive session mainly due to price losses in banking stocks SAMP (-4.0%), COMBN (-1.2%), NTBN (-2.2%), HNBN (-2.1%), PABC (-1.6%), and DFCC (-3.7%). Nevertheless, FCT and CFVF ended with a sharp uptick of 13.3% and 13.6% respectively, driven by FCT’s dividend announcement of Rs. 10/share during trading hours,” Asia said.

SAMP (-21 points), HNBN (-11 points), and DFCC (-8 points) ended as the biggest laggards on the ASPI.

Foreigners recorded a net inflow of Rs. 10 million. Net foreign buying topped in RICH at Rs. 21.1 million and selling topped in EXPO at Rs. 16.9 million.

First Capital said the ASPI closed in the negative territory for the 5th consecutive session as macro-economic worries outweighed the investor sentiment, despite EXIM bank of China agreeing tentatively on Sri Lanka’s debt treatment.

The Index moved on a downward trajectory throughout the session and closed in the red zone at 10,675 losing 142 points. However, Treasury related counters attracted sizable interest during the day following the Rs. 10 dividend announcement from FCT while anticipations for decline in rates at T-Bill auction further bolstered buying on treasury counters.

NDB Securities said high net worth and institutional investor participation was noted in John

Keells Holdings and Hayleys Fabric. Mixed interest was observed in First Capital Treasuries, First Capital Holdings and Capital Alliance whilst retail interest was noted in Amana Bank rights, Browns Investments and LOLC Finance.

The Diversified Financials sector was the top contributor to the market turnover (due to First Capital Treasuries, First Capital Holdings and Capital Alliance) whilst the sector index lost 0.72%. The share price of First Capital Treasuries increased by Rs. 4.70 to Rs. 40.10. The share price of First Capital Holdings gained Rs. 6 to Rs. 50.10. The share price of Capital Alliance moved down by 40 cents to Rs. 63.20.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.70%. The share price of John Keells Holdings recorded a loss of Rs. 1.25 to Rs. 188.50.

Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings declined by 50 cents to Rs. 124.25.