Bearish run continues at CSE

The Colombo stock market continued its bear run yesterday amidst low investor activity.

Both indices closed marginally down whilst turnover was Rs. 1.6 billion involving 47 million shares.

Asia Securities said the market closed lower for a fourth session amidst subdued investor activity.

It said SCAP (-2.5%), SEYBX (-4.2%), TKYON (-1.6%), NTBN (-1.8%), PLC (-2.4%), and LOFC (-1.9%) recorded price losses during the session while CALT (+7.9%), GRAN (+3.0%), LIOC (+2.4%) ended in green. Turnover was led by GRAN (Rs. 190 million), AHPL (Rs. 173 million), JKH (Rs. 138 million), and CALT (LKR 95 million). Overall, 86 stocks closed higher while 98 settled with losses.

Foreigners recorded a net outflow of Rs. 38.4 million. Net foreign buying topped in JKH at Rs. 8.8 million while selling topped in LIOC at Rs. 25.7 million.

First Capital said the market was on a volatile trend during the day and closed flat at 11,166, losing 4 points. The tourism sector shares continued to witness active collection during the day, coinciding with a third consecutive month of tourist arrivals exceeding 90,000 as of 20 August 2023. Furthermore, PD shares slightly gained traction followed by the increase in weighted average yields observed at both the bill and bond auctions, indicating potential future gains for PD shares. 

Stocks tied to poultry also witnessed active investor interest after the removal of import taxes on maize, a move aimed at reducing the cost of animal feed. In contrast, the banking sector remained relatively subdued, experiencing mild selling pressure during the day. 

Market turnover marked a nearly 5-week low, and 54.5% less than the monthly average turnover of Rs. 3.6 billion. Notably, the Food, Beverage & Tobacco, Consumer Services and the Capital Goods sectors collectively contributed 52% to the overall turnover.

NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank, John Keells Holdings, and Ceylon Grain Elevators. Mixed interest was observed in Asian Hotels & Properties, Capital Alliance and Lanka IOC whilst retail interest was noted in The Kingsbury, Browns Investments and LOLC Finance. 

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Ceylon Grain Elevators) whilst the sector index gained 0.44%. The share price of Ceylon Grain Elevators increased by Rs. 5 to Rs. 170.50.

The Consumer Services sector was the second highest contributor to the market turnover (due to Asian Hotels & Properties) whilst the sector index decreased by 0.61%. The share price of Asian Hotels & Properties gained 30 cents to Rs. 53.80.

John Keells Holdings, Capital Alliance and Lanka IOC were also included amongst the top turnover contributors. The share price of John Keells Holdings moved down by Rs. 1.25 to Rs. 180.

The share price of Capital Alliance recorded a gain of Rs. 6 to Rs. 81.70. The share price of Lanka IOC appreciated by Rs. 2.75 to Rs. 115.75.

Separately, Lake House Printers & Publishers and Lee Hedges announced their dividends of Rs. 5 and Rs. 1 per share respectively.