CSE ends week with marginal loss

The Colombo stock market ended another week of losses though marginal in comparison to the previous week amidst lacklustre investor activity.

During the week the ASPI lost 0.2% and the S&P SL20 gained 0.1%. In the previous week the indices declined by 236% and 4.23% respectively. Average daily turnover this week was Rs. 778 million, higher in comparison to Rs. 694 million in the previous week.

Asia Securities said the indices closed out the week in red with the ASPI declining 16 points and the S&P SL20 edging 9 points. Activity on the Exchange continued at low levels as investors await more clarity on the domestic debt optimisation. The breadth of the market was negative with 77 price gainers and 84 decliners.

Turnover was led by HNBN (Rs. 261 million), WATA (Rs. 84 million), and DIAL (Rs. 37 million).

Foreigners recorded a net outflow of Rs. 226 million. Net foreign buying topped in WATA at

Rs. 7.2 million and selling topped in HNB.N at Rs. 228.3 million.

First Capital said the bourse closed the week flat on the back of dull investor sentiment as retailers remain sidelined over delays in finalising the DDR process. Index rallied in the beginning as buying interest on banking counters continued yet another day as investors speculated DDO proposal to be released soon. However, selling pressure emerged mainly on blue-chip counters (SPEN, JKH and EXPO), which wiped off most of the gains as retailers chose to book profits and adopt a cautious stance after the index breached the psychological barrier of 8,700. Accordingly, the index closed the day flat at 8,697, losing 16 points.

Although volumes continued to remain low, turnover was recorded at a respectable level of Rs. 729.7 million owing to the high institutional investor participation through off-board transactions of SIRA, CTC and DIAL. Persistent buying spree on banks led the turnover with the contribution of 43% out of which HNB solely contributed 36%. Moreover, foreign investors turned net sellers amidst moderate participation recording a net outflow of Rs. 226.0 million.

NDB Securities said high net worth and institutional investor participation was noted in Dialog Axiata, Sierra Cables and Ceylon Tobacco Company. Mixed interest was observed in Watawala Plantations, Sampath Bank and Aitken Spence Hotel Holdings whilst retail interest was noted in Browns Investments, Hatton National Bank and SMB Leasing.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank and Sampath Bank) whilst the sector index gained 0.67%. The share price of Hatton National Bank increased by one rupee to Rs. 121. The share price of Sampath Bank recorded a gain of 20 cents to Rs. 50.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Watawala Plantations and Ceylon Tobacco Company) whilst the sector index decreased by 0.29%. The share price of Watawala Plantations lost Rs. 3.20 (4.37%) to Rs. 70.10. The share price of Ceylon Tobacco Company appreciated by Rs. 1.75 to Rs. 809.50.

Dialog Axiata was also included among the top turnover contributors. The share price of Dialog Axiata moved up by 10 cents to close at Rs. 10.10.

Separately Central Industries announced its cash dividend of Rs. 3 and Scrip dividend of Rs. 3. Samson International and Prime Lands Residencies announced their dividends of Rs. 2 and Rs. 1 per share respectively.