Erratic sentiments at CSE

The Colombo stock market yesterday saw erratic sentiments with indices having a choppy day and closing on a mixed note amidst low volume. The active S&P SL20 closed with 3.5 points lower and the benchmark ASPI finished unchanged. 

Turnover was Rs. 699 million involving 36 million shares. Asia Securities said the indices reversed gains in the second half of the session due to price losses in TJL (-0.6%), DIAL (-2.0%), and HNBN (-1.7%) while EXPO (+1.0%), AEL (+1.4%), AAIC (+2.1%), SCAP (+1.2%), and TKYON (+1.2%) recorded price gains cushioning the ASPI’s decline. The ASPI touched a low of 8,776 (-47 points) in early trading, however, saw a moderate pick-up to 8,846 (+23 points) before closing out at 8,823. The breadth of the market was neutral with 74 price gainers and 70 decliners.

In terms of turnover TJL took the lead (Rs. 121mn) driven by a block trade executed during the session. Foreigners recorded a net inflow of Rs. 13.8mn. Net foreign buying topped in EXPO at Rs. 7.1mn and selling topped in AEL at Rs. 3.8mn. First Capital said the Bourse closed the day flat at 8,823, gaining only 0.3 points amidst a volatile trading session. The index was led by CARS possibly due to the delisting announcement of SHAL, SELI, GOOD, and INDO. Furthermore, most retail investors were on the sidelines and the banking counter was among the negative contributors during the day. SAMP was the biggest loser after it reported a profit of Rs. 3.0Bn for 1Q2023 representing a 38%YoY decline. 

Moreover, CTC witnessed selling interest during the day, after witnessing continuous buying interest during the past few sessions due to the notable cash dividend announcement amidst successful earnings in 1Q2023. 

TJL topped the turnover during the day as it witnessed an off-board transaction totalling 3.8Mn shares aided by local high net-worth interest. DB Securities said high net worth and institutional investor participation was noted in Teejay Lanka and Dialog Axiata. Mixed interest was observed in Lanka IOC, Expolanka Holdings and Nations Trust Bank whilst retail interest was noted in SMB Leasing, Browns Investments and LOLC Finance.

The Consumer Durables & Apparel sector was the top contributor to the market turnover (due to Teejay Lanka) whilst the sector index gained 0.82%. The share price of Teejay Lanka decreased by 20 cents to Rs. 31.70.

The Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index closed flat. The share price of Lanka IOC gained 25 cents to Rs. 140.25.

Expolanka Holdings, Dialog Axiata and Nations Trust Bank were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved up by Rs. 1.50 to Rs. 148.

The share price of Dialog Axiata recorded a loss of 20 cents to Rs. 9.90. The share price of Nations Trust Bank declined by 10 cents to Rs. 64.90.