Woes at CSE continue onto fresh week, ASPI slumps to five month low

The Colombo stock market began a new week yesterday on a dismal note with both indices down amidst low turnover reinforcing lack of confidence among the investor community.

The active S&P SL20 declined by 2% and the benchmark ASPI by 1.43%. Turnover was Rs. 554.25 million involving over 31.6 million shares.

Asia Securities said the market commenced the week on a downbeat note with the banking sector counters continue to decline.

The ASPI declined 162.1 points (-1.4%) and the S&P SL20 index dropped 64.9 points (-2.0%), dragged by HNBN (-2.8%), COMBN (-2.2%), NTBN (-1.7%), and SAMP (-1.3%). Moreover, front-line stocks LMF (-3.8%), LOFC (-3.6%), MGT (-2.1%), and BIL (-2.0%) closed in red triggering a broad-based decline during the session. 

HNBN (-15 points), COMBN (-14 points), and LOLC (-9 points) ended as the biggest laggards on the ASPI. Turnover was led by crossings in HAYL (Rs. 47 million). 

Asia Securities also said foreigners recorded a net inflow of Rs. 48.9 million while their participation increased to 5.0% of turnover (previous day 2.1%). Net foreign buying topped in MELS.N at Rs. 39.9 million while net foreign selling topped in KHL.N at Rs. 0.6 million.

Crossings accounted for 14.3% of turnover led by HAYLN (Rs. 47.0 million) and MELSN (Rs. 32.4 million). Market P/E was 9.04.

First Capital said the broad market commenced the week on a negative note and fell to a 5-month low on the back of price declines across all sectors. This resulted with ASPI closing Monday’s session at 11,200, losing 162 points. 

COMB, HNB, LOLC, JKH and SAMP emerged as the top negative contributors to the index. Amidst the muted participation of HNW investors compared previous sessions, turnover plunged to Rs. 554.3 million, marking a 30.3% decrease from the monthly average standing at Rs. 795.2 million. The food, beverage and tobacco sector dominated turnover by 22%, followed by the capital goods and banking sectors jointly contributing 37% of overall turnover. 

Foreign investors remained net buyers, with a net inflow of Rs. 49 million.

NDB Securities said high net worth and institutional investor participation was noted in Hayleys and Melstacorp. 

Mixed interest was observed in Dialog Axiata, Sampath Bank and Lanka Milk Foods whilst retail interest was noted in Maharaja Foods, Browns Investments and Lanka Credit and Business Finance. Foreign participation in the market activity remained at subdued levels with foreigners closing as net buyers.

The food, beverage and tobacco sector was the top contributor to the market turnover (due to Melstacorp and Lanka Milk Foods) whilst the sector index lost 0.73%. The share price of Melstacorp lost Rs. 1.40 (1.72%) to close at Rs. 80.10. The share price of Lanka Milk Foods declined by one rupee (3.85%) to close at Rs. 25.

The capital Goods sector was the second highest contributor to the market turnover (due to Hayleys) whilst the sector index decreased by 1.29%. The share price of Hayleys decreased by Rs. 0.90 to close at Rs. 93.10.

Dialog Axiata and Sampath Bank were also included amongst the top turnover contributors. The share price of Dialog Axiata closed flat at Rs. 8.90. The share price of Sampath Bank recorded a loss of Rs. 1.00 (1.32%) to close at Rs. 75.00.