CSE ends 2023’s first week with losses owing to mixed local investor sentiment

• Foreigners start with net buying

The Colombo Stock Exchange (CSE) ended the first week of the new year with losses owing to mixed sentiments on the part of locals, but foreigners began 2023 with net buying.

The bourse saw the ASPI losing 65.55 points (0.77%) while the S&P SL20 declined 22.69 points (0.86%). Turnover averaged Rs. 2.3 billion improving from Rs. 1.45 billion last week.

Net foreign inflow yesterday rose to Rs. 148 million largely due to Hemas Holdings (Rs. 151 million) thereby bringing the year-to-date net foreign buying to Rs. 63.6 million. First two days of the market saw net foreign selling.

Asia Securities said the indices on Friday ended the week on a downbeat note weighed by price losses in EXPO (-2.5%), COMB (-1.9%), HAYL (-1.5%), and LIOC (-1.2%). On the flipside, SCAP witnessed another positive session and closed with a gain of 8.3% supported by active retail collection.

Turnover of Rs. 2 billion was led by SCAP (Rs. 503 million), AGST (Rs. 211 million), and HHL (Rs. 209 million). 

Crossings accounted for 7% of turnover with three crossings in AGST (Rs. 70.2 million) two crossings in JKH (Rs. 59.3 million) and one crossing in RIL (Rs. 30 million).

Overall, 66 stocks closed in green while 105 ended with losses for the day.

First Capital said the bourse closed negatively for the second session as investors took a wait and see approach awaiting clarity on the electricity tariffs which is yet to be finalised while expectations on interest rates from the upcoming monetary policy review meeting continued to hold.

The ASPI moved on a continuous downward momentum throughout the session amidst lacklustre participation while investors booked profits in index heavy weights and banking sector counters before closing the day at 8,424 losing 40 points.

NDB Securities said the indices closed in red as a result of price losses in counters such as Expolanka Holdings, Commercial Bank and Hayleys.

It said high net worth and institutional investor participation was noted in Agstar, John Keells Holdings and RIL Property. Mixed interest was observed in Hemas Holdings, Capital Alliance, and Lanka IOC whilst retail interest was noted in Softlogic Capital, LOLC Finance and Browns Investments. The insurance sector was the top contributor to the market turnover whilst the sector index gained 3.13%. 

The capital goods sector was the second highest contributor to the market turnover (due to Hemas Holdings and John Keells Holdings) whilst the sector index decreased by 0.43%. The share price of Hemas Holdings moved down by 10 cents to Rs. 57.90. The share price of John Keells Holdings lost 50 cents to Rs. 138.

Softlogic Capital, Agstar and Capital Alliance were also included amongst the top turnover contributors. The share price of Softlogic Capital increased by Rs. 1.10 (8.33%) to close at Rs. 14.30. The share price of Agstar gained by one Rupee (6.25%) to close at Rs. 17. The share price of Capital Alliance appreciated by Rs. 1.30 (4.68%) to close at Rs. 29.10.