CSE ends week with losses but September with gain

The Colombo stock market remained negative ending the week with losses amidst waning investor appetite.

The ASPI dipped by 20 points or 0.2% and the S&P SL20 by 3.5 points or 0.11%. The indices closed lower for a second consecutive week with the ASPI declining 33.73 points (0.34%) and the S&P SL20 shedding 37.68 points (1.18%). Turnover yesterday was Rs. 2.57 billion involving 99.3 million shares.

For the month, however, ASPI gained 859.75 points (9.48%) and the S&P SL20 gained 236.36 points (8%).

Asia Securities said indices yesterday closed with modest losses in a range-bound session due to a mix of profit-taking in heavyweights and broad-based bargain buying.

Retail and HNI activity was moderate throughout the session with turnover powered by LIOC (Rs. 260 million), LOFC (Rs. 182 million), and CIC (Rs. 175 million).

A string of stocks transacted block trades during the session with 2 crossings each in COMBN (Rs. 102.1 million) and JKH (Rs. 82.8 million), 1 crossing each in LOFCN (Rs. 100 million), HUNAN (Rs. 36 million), LIOCN (Rs. 34.6 million), AGSTN (Rs. 29.7 million), CICX (Rs. 28 million), and CICN (Rs. 21.3 million).

“The ASPI oscillated in a narrow range of 9,940-9,970 before moving downwards in the last few minutes of trading. SAMP (-2.6%) ended as the biggest laggard on the ASPI, dragging the index by 11 points. On the other hand, LIOC (+1.5%), LOFC (+3.6%), CICN (+3.8%), CICX (+6.6%), and LLUB (+3.6%) closed with price gains. The breadth of the market remained negative with 81 price gainers and 114 decliners,” Asia said.

It also said foreigners recorded a net inflow of Rs. 69.5 million while their participation increased to 6.8% of turnover (previous day 3.4%). Net foreign buying topped in JKH at Rs. 59.4 million and selling topped in COMB.N at Rs. 60.1 million.

First Capital said the ASPI ended the day on a negative note amidst selling in margin accounts. Index displayed significant volatility during the session yet plunged into the red zone towards the end of the day before closing at 9,931, losing 20 points. 

However, tapered down buying interest was visible on selected shares as investors slowly collected battered down stocks such as LIOC and Material sector counters while expecting the market trend to reverse with the start of a fresh new month whereas, Transportation (mainly EXPO) and Banking sectors largely pulled down the index during the day.

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Vallibel One, Sampath Bank and Richard Pieris & Company.

High net worth and institutional investor participation was noted in Commercial Bank, LOLC Finance and John Keells Holdings. Mixed interest was observed in Lanka IOC, Expolanka Holdings and CIC Holdings whilst retail interest was noted in Browns Investments, Renuka Agri Foods and SMB Leasing.

Materials sector was the top contributor to the market turnover (due to CIC Holdings voting and CIC Holdings nonvoting) whilst the sector index gained 2.33%. The share price of CIC Holdings voting moved up by Rs. 3.20 (3.76%) to close at Rs. 88.30. The share price of CIC Holdings nonvoting appreciated by Rs. 4.30 (6.62%) to close at Rs. 69.30.

The Capital Goods sector was the second highest contributor to the market turnover whilst the sector index decreased by 0.59%. Lanka IOC, LOLC Finance and Expolanka Holdings were also included among the top turnover contributors. 

The share price of Lanka IOC increased by Rs. 4.25 (1.49%) to close at Rs. 288.75. The share price of LOLC Finance gained 30 cents (3.57%) to close at Rs. 8.70. The share price of Expolanka Holdings recorded a loss of Rs. 1.75 (0.80%) to close at Rs. 217.50.

Separately Hayleys Fibre and Haycarb announced their interim dividends of Rs. 2 and Rs. 2.75 per share respectively.