Trading improves at CSE but indices down

The Colombo stock market began a fresh week with indices down despite investor activity improving.

The active S&P SL20 dipped by 1.5% and the benchmark ASPI by 1.3%. Turnover was Rs. 1.3 billion involving a recent high 100 million shares.

Asia Securities said the indices fell sharply due to declines of EXPO (-2.8%), JKH (-1.0%), LOLC (-1.6%), LOFC (-2.9%), VONE (-5.3%), and DIAL (-2.3%). However, LIOC saw an upbeat session, recording a sizable gain of 9.3% gain and generating the highest turnover for the session at Rs. 611 million largely on the back of retail and HNI activity. 

Asia also said foreigners ended on the buying side, recording a net inflow of Rs. 28 million supported by net buying in RICH (Rs. 14 million) and EXPO (Rs. 6 million). Selling topped in HAYC at Rs. 4.3 million. The breadth of the market ended weak with 49 price gainers and 120 decliners.

First Capital said the Bourse subsided to the negative with investors taking side-lines awaiting a surge in rates in the upcoming policy review while hike in T-Bill rates in the last bill auction further deteriorated market participation. 

It said the ASPI slightly surged as the market opened but hit the skids subsequently and continued to decline throughout the session with investors predominantly booking profits in counters such as BIL and EXPO. Energy sector solely contributed 47% to the overall turnover while the Capital Goods Sector contributed 16% driven by the off-board transaction of JKH. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings and Softlogic Holdings. Mixed interest was observed in Lanka IOC, Expolanka Holdings and LOLC Holdings, whilst retail interest was noted in SMB Leasing nonvoting, Industrial Asphalts and Browns Investments. 

It said the energy sector was the top contributor to the market turnover (due to Lanka IOC), whilst the sector index gained 8.16%. The share price of Lanka IOC increased by Rs 7.30 (9.32%) to close at Rs. 85.60. 

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Hayleys), whilst the sector index decreased by 1.53%. The share price of John Keells Holdings moved down by Rs. 1.25 (1.02%) to close at Rs. 121. The share price of Hayleys declined by 20 cents to close at Rs. 66.

Expolanka Holdings and LOLC Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 5.00 (2.83%) to close at Rs. 171.50. The share price of LOLC Holdings recorded a loss of Rs. 6.25 (1.56%) to close at Rs. 393.25.