CSE closes lower but turnover soars

The Colombo stock market symbolically lost its winning streak in terms of the benchmark index, but investors remained bullish propelling the turnover to over Rs. 11 billion with over 402 million shares traded. 

The ASPI closed down over 30 points, or 0.27%, and the S&PSL20 climbed up over 33 points, or 0.86%.

LOLC peaked to a high of Rs. 1,020 before closing at Rs. 985, up by Rs. 2.50 with 0.7 million shares changing hands. Expolanka peaked at Rs. 296 but closed at Rs. 284.50, up by Rs. 3 with 5.8 million shares traded. 

Asia Securities said after witnessing a strong first half, the ASPI reversed its intra-day gains, led by a pull-back in heavyweights CLC and LOFC and closed out the session with modest losses while the more liquid S&P SL20 index held steady ground to continue its upward trend for the eleventh consecutive session and scaled another record closing high at 3,906 (30 points), supported by price gains in EXPO, LOLC, VONE, and BRWN. 

Turnover reached a three-week high boosted by retail and HNI activity in BIL (Rs. 2,179 million), EXPO (Rs. 1,669 million), and LOLC. 

“Earlier, the ASPI commenced the session with a sharp 156-point gap up and scaled an all-time high at 11,642 (+201 points) in mid-afternoon trade. However, the index pared down its gains in the second half of the session and gradually slipped into negative territory, snapping its seven-day gaining streak. CLC came in as the biggest laggard of the day contributing 74 negative points to the ASPI, followed by LOFC (-19 points). The breadth of the market ended negative with 94 gainers and 108 decliners,” Asia said.

It said foreigners recorded a net outflow of Rs. 55.6 million while their participation declined to 1.1% of turnover (previous day 5.9%). Net foreign buying topped in TKYO at Rs. 9 million and net selling topped in JKH at Rs. 16.7 million.

First Capital said the bourse snapped its four-day gaining spree and closed in the red territory while the index failed to close crossing the 11,500 psychological level despite recording a turnover at a three-week high. 

“The market opened with a bullish sentiment and displayed a positive momentum even past mid-session reaching an intraday high of 11,650. However, the market failed to hold the momentum as investors resorted to profit taking resulting in the index plummeting with massive volatility and closed for the day at 11,410 losing 31 points,” First Capital added. It said turnover was led by a joint contribution of 48% from the Food, Beverage and Tobacco sector and the Capital Goods sector. 

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Commercial Leasing & Finance, Lanka Orix Finance and Dialog Axiata.

It said high net worth and institutional investor participation was noted in LOLC Holdings. Mixed interest was observed in Expolanka Holdings, Vallibel One and Brown & Company, whilst retail interest was noted in Browns Investments, Softlogic Capital and Lanka Orix Finance. 

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Browns Investments), whilst the sector index gained 0.12%. The share price of Browns Investments decreased by 10 cents (0.71%) to close at Rs. 14.

The Capital Goods sector was the second highest contributor to the market turnover (due to Vallibel One), whilst the sector index increased by 1.49%. The share price of Vallibel One recorded a gain of Rs. 3.40 (5.03%) to close at Rs. 71.