Bourse fails to bloom for 2021 Budget

The Colombo Stock Market, given a fuller opportunity yesterday, failed to come up with a convincing performance, despite a development-oriented and investor-friendly Budget unveiled on Tuesday. 

The ASPI closed at 6,108.22, edging down 0.71 points (-0.01%), while the more liquid S&P SL20 index closed at 2,397.26, edging up 1.55 points (+0.06%).

Expectations were that Bourse with a full session ahead would cheer the 2021 Budget, whilst on Tuesday there were signs of early optimism and confidence when the ASPI gained 32 points or 0.5% and the S&P SL20 finished up nine points or 0.4%.

However turnover yesterday was Rs. 2.45 billion, slightly higher than Tuesday. 

First Capital opined: “Post budget profit-taking disrupted the momentum, reverting the direction of the market to negative, while sustaining the Rs. 2 billion plus turnover.

Index experienced a downtrend within the early hours of trading as it hit its intraday low of 6,086. Later, the market witnessed a short-lived bounce back during mid-day and closed at 6,108, losing merely one point.”

Asia Securities said: “Despite a growth driven budget, the index saw minimal movement during the day.”

NDB Securities said the ASPI edged down as a result of price losses in counters such as Carson Cumberbatch, Richard Pieris and Company and Sri Lanka Telecom.

It said high net worth and institutional investor participation was noted in Ceylon Cold Stores (CCS). Mixed interest was noted in Hemas Holdings, Melstacorp and CIC Holdings, whilst retail interest was noted in Expolanka Holdings, Renuka Agri Foods and Ceylon Grain Elevators. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to CCS and Melstacorp), whilst the sector index gained 0.54%. The share price of CCS edged down by Rs. 0.10 (0.02%) to close at Rs. 635.00. The share price of Melstacorp appreciated by Rs. 0.90 (2.60%) to close at Rs. 35.50.

The Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings), whilst the sector index decreased by 2.18%. The share price of Expolanka Holdings decreased by Rs. 0.60 (2.18%) to close at Rs. 26.90.

Hemas Holdings and John Keells Holdings (JKH) were also included amongst the top turnover contributors. Furthermore, the share price of Hemas Holdings gained Rs. 2.00 (2.51%) to close at Rs. 81.60, whilst the share price of JKH recorded a gain of Rs. 0.30 (0.21%) to close at Rs. 141.40.

Asia Securities also said interest by foreigners was noted in the Food, Beverage and Tobacco sector with foreign buying in CCS.N. 

Foreign participation increased to 8.1% of turnover (5.1% previous day), with net outflows of Rs. 50.98 million, dominated by Teejay Lanka PLC. Estimated net foreign buying topped in CCS at Rs. 50.6 million.