CSE ends week on the up despite Friday fall

The Colombo stock market ended the week marginally up whilst activity on Friday remained lacklustre and negative.

During the week, the ASPI and the S&P SL20 gained 0.9% and 0.5% respectively as against a loss of over 1% last week. Average daily turnover was Rs. 689.5 million down from Rs. 977 million and Rs. 1 billion in the preceding two weeks.

On Friday, the ASPI was down 0.3% and S&P SL20 by 0.7%. Turnover was only Rs. 513.5 million involving 16.4 million shares. 

Asia Securities said the market concluded the week on a subdued note as investors gear up for the launch of Regulated Short Selling (RSS) and Stock Borrowing and Lending (SBL), set to commence this upcoming Monday, 6 November. 

After reaching 10,846 (+19 points) in early trading, the ASPI slipped into red territory and moved in the range of 10,780-10,800 in the second half of the session. BIL (-3.8%), LLUB (-4.1%), HNBN (-2.0%), NDBN (-1.3%), HAYL (-1.3%), and SAMP (-1.5%) closed in red. HNBN (-10 points), SAMP (-8 points), and BIL (-6 points) came in as the biggest laggards on the ASPI.

Market turnover on Friday was led by JKH (Rs. 157 million), GRAN (Rs. 63 million), and BIL (Rs. 32 million).

Asia also said foreigners recorded a net inflow of Rs. 38.1 million. Net foreign buying topped in JKH at Rs. 32 million and selling topped in HNB.N at Rs. 14.3 million.

First Capital said the market reverted to the red zone, closing at 10,790 with a 37-points loss largely owing to weakened investor participation as concerns over the upcoming budget prompted investors to adopt a cautious approach. 

In the early trading hours, ASPI showed a slight pickup but slowly regressed to red as selling pressure took charge broadly across all sectors. Accordingly, Banking sector counters experienced decline in price while HNB and SAMP were amongst the top contributors to the drop in ASPI. Additionally, LLUB’s stock price dropped by 4% during the session due to the XD date falling. LIOC also witnessed profit-taking after recent price gains in previous sessions. Limited retail participation and low trading volumes resulted in a significant decrease in turnover, which was a 42% drop from the monthly average of Rs. 891.2 million while Capital Goods (36%) and Food, Beverage and Tobacco (25%) sectors dominated overall turnover. On the flip side, foreign investors turned to net buyers and buying interest remained strong on JKH.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Ceylon Grain Elevators, Browns Investments and Expolanka Holdings whilst retail interest was noted in Colombo Land and Development Company, Amana Bank 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 0.20%. The share price of John Keells Holdings increased by 25 cents to Rs. 192.75.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Ceylon Grain Elevators and Browns Investments) whilst the sector index edged up by 0.08%. The share price of Ceylon Grain Elevators gained Rs. 2.75 to Rs. 180.25. The share price of Browns Investments moved down by 20 cents to Rs. 5.

Expolanka Holdings and Colombo Land and Development Company were also included amongst the top turnover contributors. The share price of Expolanka Holdings recorded a loss of 75 cents to Rs. 131. The share price of Colombo Land and Development Company appreciated by one rupee to Rs. 20.80.