CSE down for 10th consecutive day

The Colombo stock market yesterday suffered its 10th consecutive dip as investor sentiment remained bearish despite endorsement of economic recovery by the International Monetary Fund (IMF) last week and portrayal of positivism by the Government.

The active S&P SL20 was down by 0.8% and the benchmark ASPI by 0.6%. Year to date their dip is 4.6% and 2.7% respectively. The CSE ended 2023 with ASPI up 25.5% and the S&P SL20 by 16.4%.

Turnover yesterday was Rs. 979 million involving 54.5 million shares.

The market also saw net foreign selling continuing with year to date value now over Rs. 1.6 billion.

Asia Securities said the indices continued their downward momentum mainly due to price losses in COMBN (-1.8%), SAMP (-1.3%), NTBN (-1.2%), NDB (-1.4%), and PABC (-1.1%). 

The banking sector index lost 1.3% during the session. The ASPI dropped below the 10,400 mark to close at a six-month low at 10,372, declining 61 points (-0.6%) while the S&P SL20 index lost 24 points (-0.8%). Other than banks, JKH (-1.0%), RCL (-2.3%), MGT (-1.3%), and LMF (-2.8%) recorded price declines, exerting pressure on the indices. However, buying interest was observed in AMF (+3.0%), TKYOX (+5.0%), PLR (+3.1%), and DIST (+1.5%) during the session. Overall, 43 stocks ended in green while 118 settled with losses.

Turnover improved supported by off-board transactions in WIND (Rs. 493 million) and COCO (Rs. 120 million), accounting for 63% of market turnover.

Foreigners recorded a net outflow of Rs. 39.9 million. Net foreign buying topped in MGT at Rs. 4 million and selling topped in JKH at Rs. 20.9 million 

First Capital said the Bourse once again closed in the red zone, with the blue chip and banking counters dragging the index down for its 10th consecutive fall. 

It said the ASPI showed a downward trend throughout the day and ended at 10,372, with COMB, SAMP and DFCC being the largest negative contributors to the index. LIOC saw an increase in investor interest and was one of the largest positive contributors to the index. 

Turnover was 14% less than the month’s daily average of Rs. 1.1 billion. It was largely contributed by two off-board transactions of WIND which totalled to 25 million shares at a price of Rs. 19.7 per share contributing to 50% of the total market turnover. 

NDB Securities said mixed interest was observed in John Keells Holdings, Commercial Bank and Melstacorp whilst retail interest was noted in Industrial Asphalts, Browns Investments and Kotagala Plantations. 

The Utilities sector was the top contributor to the market turnover (due to Windforce) whilst the sector index gained 0.45%. The share price of Windforce increased by 10 cents to Rs. 19.40.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Renuka Foods and Melstacorp) whilst the sector index decreased by 0.14%. The share price of Renuka Foods gained 90 cents to Rs. 16.90. The share price of Melstacorp declined by 10 cents to Rs. 81.

John Keells Holdings and Commercial Bank were also included amongst the top turnover contributors. The share price of John Keells Holdings moved down by Rs. 1.75 to Rs. 181.75. The share price of Commercial Bank recorded a loss of Rs. 1.60 to Rs. 87.90.