Stock market dip continues with low turnover

Friday, 20 November 2020 02:37 - - {{hitsCtrl.values.hits}}

CSE sees first net foreign inflow in 6 weeks

The Colombo Stock Market continued its negative run amidst low turnover, despite a Government-dubbed development-oriented and investor-friendly Budget 2021.

The All Share Price Index declined by over 47 points or 0.7% and the S&P SL 20 by over nine points or 0.4%. Turnover was a below-average Rs. 1.4 billion.

First Capital said the Bourse continued its downfall for the second consecutive session, recording the highest intraday loss after three weeks amidst the investor-friendly Budget.

“The index recorded a gradual downtrend since the beginning of the session and closed at 6,061, losing 47 points,” it added.

“Subdued activity in the market led to a decline in turnover,” Asia Securities said, adding HNI’s and retailers continued to dominate the market with notable interest in counters like MELS, HHL and CIND.

On a positive note, the market saw a net foreign inflow of Rs. 29.4 million yesterday, for the first time in six weeks.

Softlogic Stockbrokers said top traded counters for the day were Expolanka Holdings Rs. 311.1 million, Dipped Products Rs. 108.9 million, Hemas Holdings Rs. 92.2 million, Melstacorp Rs. 83.6 million and Tokyo Cement Rs. 64.1 million.

NDB said the ASPI closed in red as a result of price losses in counters such as C T Holdings, Ceylon Tobacco Company and Nestlé Lanka.

It said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Melstacorp, Tokyo Cement Company and Central Industries, whilst retail interest was noted in Expolanka Holdings, Dipped Products and Hemas Holdings.

Materials sector was the top contributor to the market turnover (due to Dipped Products and Tokyo Cement Company), whilst the sector index lost 1.73%. The share price of Dipped Products lost Rs. 9.20 (2.79%) to close at Rs. 320.50. The share price of Tokyo Cement Company declined by Rs. 1 (1.61%) to close at Rs. 61.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings), whilst the sector index decreased by 2.97%. The share price of Expolanka Holdings decreased by Rs. 0.80 (2.97%) to close at Rs. 26.10.

Hemas Holdings and Melstacorp were also included amongst the top turnover contributors. Furthermore, the share price of Hemas Holdings moved up by Rs. 0.90 (1.10%) to close at Rs. 82.50, whilst the share price of Melstacorp recorded a gain of Rs. 0.40 (1.13%) to close at Rs 35.90.