CSE dips to two-month low; JKH draws Rs. 153 m net foreign buying

The Colombo stock market yesterday slumped to a two-month low as investor sentiment remained negative.

The benchmark ASPI was down by 1.15% and the active S&PSL20 was down by 1.23%. Turnover was Rs. 854.5 million involving 29.7 million shares.

Asia Securities said indices remained in the red with a moderate turnover as investors opted to stay on the sidelines awaiting clarity on the second IMF tranche and assessing budget speculations. Nevertheless, JKH witnessed increased activity, driven by foreign investors, resulting in a net foreign inflow of Rs. 153 million for the day. The indices closed at a five-week low with the ASPI declining 129 points and the active S&P SL20 index losing 39 points. Sectorally, the banking sector index dropped 1.4% due to price losses in PABC (-2.1%), SAMP (-2.5%), HNBN (-1.6%), SEYBX (-2.9%), COMBX (-2.6%), and NDB (-2.5%). Overall, 33 stocks closed in green while 149 settled with losses.

First Capital said the bourse extended its losses with a decline of over 100 points for the 2nd consecutive day with a price drop observed all across the board as uncertainty over the delay in IMF proceedings and the upcoming budget kept investors on the sidelines. 

Selling pressure was mainly observed on the index heavy weights and the banking sector counters, resulting in ASPI dropping to a 2-month low. Although the index edged up in the beginning, inflated selling pressure across the sectors dragged the market into negative territory, closing the day at 11,035, losing 129 points. 

With investors awaiting clarity on the upcoming monetary policy review meeting scheduled for 5 October 2023, turnover remained subdued.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Capital Alliance, Distilleries and Expolanka Holdings whilst retail interest was noted in Browns Investments, Industrial Asphalts 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 0.37%. The share price of John Keells Holdings increased by 50 cents to Rs. 191.

The Diversified Financial sector was the second highest contributor to the market turnover (due to Capital Alliance and First Capital Holdings) whilst the sector index decreased by 2.72%. The share price of Capital Alliance lost Rs. 5.40 to Rs. 70.60. The share price of First Capital Holdings declined by Rs. 3.50 to Rs. 45.10.

Distilleries and Expolanka Holdings were also included among the top turnover contributors. The share price of Distilleries moved down by 50 cents to Rs. 26.90. The share price of Expolanka Holdings recorded a loss of Rs. 3.25 to Rs. 131.50.