Negative run at CSE persists

The Colombo stock market continued with its negative run for the second consecutive day though much sharper dip was experienced as investor sentiment remained subdued.

Lanka Securities said the market continued to end in red note with both benchmark indices recording considerable losses. ASI lost 68.50 index points (-1.03%) to close at 6,675.70 while more sensitive MPI lost 51.12 index points (-0.82%) to close at 6,198.20. Market turnover was Rs. 1.7 b.

Commercial Bank of Ceylon was the top contributor to the market turnover with an amount of Rs.195.3mn and recorded several off-the-floor deals. Further, Softlogic Holdings (Rs.139.5 m) and Ceylon Tobacco Company (Rs. 137 m) recorded notable turnover levels during the day.

Hatton National Bank – Non-voting Rights traded mostly during the trading hours and ended as the top gainer of the day. It reached the high of Rs. 16.50 and closed at Rs. 8, up Rs. 6.50 (+433.3%). Meanwhile Vallibel One, Softlogic holdings and Touchwood Investments were among the heavily traded counters.

Foreign participation was relatively higher and it accounted for 20% of the total market activity. At the end of the day foreign investors closed as net sellers with net foreign outflow of Rs.132.9 m.

“Indices continued to drop amidst lacklustre retail investor participation. Price depreciation of big-cap counters such as John Keells Holdings, Carsons Cumberbatch and Bukit Darah weighed on indices,” NDB Stockbrokers said.

“However, institutional or high net worth investor participation was witnessed to a certain extent,” it added.

The Bank, Finance and Insurance sector was the main contributor to the market turnover (due to Commercial Bank and Citizens Development Finance), while the sector index decreased by 0.52%.

Commercial Bank was the main contributor to the market turnover with two crossings of 750,000 shares at Rs. 260. The share price increased by Rs. 0.90 (0.35%) and closed at Rs. 257. Foreign stake of the company decreased by 750,000 shares.

Diversified sector also contributed significantly to the market turnover (due to Softlogic Holdings and John Keells Holdings). The sector index decreased 1.64%. The share price of Softlogic Holdings decreased by Rs. 0.40 (1.52%) and closed at Rs. 26. Profit taking was witnessed in Expolanka Holdings and Swarnamahal Financial Services while interest continued in Central Finance.

Arrenga Capital said activity levels remained low as the market continued descending taking the YTD performance to a near half a percent. The deals drawn on heavy index counters such as Commercial Bank, Ceylon Tobacco and John Keells Holdings; failed to restore market performance. The four heavy deals that took place today counted for nearly 21% of the day’s turnover level.

Commercial Bank emerged to be the top contributor for the day driven mainly by institutional play with a contribution of 11.6%. The counter registered a block of 375k shares at Rs. 260. Softlogic Holdings continued to be among the top turnover list since it initiated trading. With most of the previous crossings on the counter being drawn up by its Directors and foreign investors, the counter saw 5.45 m shares being transacted today.

Renewed investor interest was evident in Ceylon Tobacco which also registered a crossing of 362.2k shares dealt at Rs. 367. Citizens Development Business which saw circa 1.27 m shares being traded for the day was solely driven to the top turnover list by a parcel of 1.25 m shares of the counter which was crossed at Rs. 80. Despite the 100k parcel being crossed off at Rs. 203 on John Keells Holdings, the counter continued to shed, dipping by 1.98% to close at Rs. 202.

Furthermore, Hotel Services emerged to be fourth price gainer for the day with an appreciation of 14.4% whilst retail interest continued in East West Properties and Panasian Power with both the counters seeing 2.8 m and 3.3 m shares being traded today. The two new entrants, Expolanka Holdings and Vallibel One was also among the most active volume list with around 5.6 m and 2.4 m shares being traded respectively.