CSE dips further

The Colombo stock market plunged further into negative territory yesterday amidst low turnover.

The active S&P SL 20 declined by 0.9% and the benchmark ASPI by 0.7%. Turnover was only Rs. 994 million involving 31.5 million shares.

Asia Securities said the indices moved downwards due to price losses in LIOC (-3.1%), CFVF (-2.8%), CALT (-1.0%), NTBN (-2.4%), SAMP (-2.9%), DIAL (-2.9%), and SCAP (-6.3%). 

The ASPI initially reached a high of 10,742 (+20 points), however reversed course and moved downwards for the remainder of the session. Overall, 40 stocks ended in green while 132 recorded price losses.

Turnover was led by JKH (Rs. 305 m) with crossings in the stock amounting to Rs. 193 million.

Foreigners recorded a net inflow of Rs. 0.04 million. Net foreign buying topped in CARG at Rs. 37.3 million and selling topped in MELS at Rs. 6.3 million.

First Capital said the Bourse extended its streak of price declines for the third consecutive day as investors opted to remain on the sidelines amidst the looming concerns on the upcoming budget and the quarterly earnings of the corporates.

Although the index surged at the beginning of the session, negative sentiment outweighed the market and closed the day at a three-month low of 10,647, losing 75 points. Notably, revitalised investor activities were observed on the major Banking counters (COMB and HNB) whilst Institutional investors’ and foreign investor participation centred on blue chip companies, primarily JKH.

Amidst the lingering macroeconomic uncertainties, investor interests reactivated on defensive shares.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Chevron Lubricants and Cargills. Mixed interest was observed in Lanka IOC, First Capital Treasuries and Expolanka Holdings whilst retail interest was noted in Eden Hotel Lanka Rights, Nation Lanka Finance and LOLC Finance.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 1.36%. The share price of John Keells Holdings decreased by Rs. 3 to Rs. 190.

The Diversified Financials sector was the second highest contributor to the market turnover (due to First Capital Treasuries) whilst the sector index decreased by 1.67%. The share price of First Capital Treasuries moved down by 20 cents to Rs 41.

Lanka IOC, Expolanka Holdings and Cargills were also included amongst the top turnover contributors. The share price of Lanka IOC lost Rs. 3.25 to Rs. 100. The share price of Expolanka Holdings recorded a gain of 25 cents to Rs. 129.75. The share price of Cargills appreciated by Rs. 32 to Rs. 400.