CSE ends yet another week with losses; foreigners remain bullish

The Colombo stock market saw yet another dismal week amidst lacklustre local investor sentiment though foreigners remained bullish.

During the week, the benchmark ASPI declined by 117 points or 1% and the active S&P SL20 by 26 points or 0.7%. In the previous week ASPI dipped by 0.9% and the S&P SL20 by 1.5%. 

Average daily turnover for the week however was higher at Rs. 1.15 billion as against Rs. 627 million in the previous week.

Net foreign inflow reached Rs. 1.7 billion due to steady buying in JKH, SAMP, HHL, and HAYL. 

Yesterday both indices were down by 0.3% whilst turnover was Rs. 784 million involving 20.3 million shares.

Asia Securities said market closed the week on low note with the indices continuing in red for a fourth session. The ASPI declined 41 points (-0.4%) and the S&P SL20 index dropped 10 points (-0.3%), dragged by LOFC (-1.6%), HNBN (-1.0%), PABC (-2.4%), MGT (-0.9%), and SAMP (-0.8%). SFCL (-10 points), HNBN (-6 points), and SAMP (-5 points) ended as the biggest laggards on the ASPI. Overall, 51 stocks ended in green while 105 settled with losses.

Turnover was led by crossings in HAYL (Rs. 244 million) whilst net foreign inflow (Rs. 166 million) continued for a fifth session, driven by HAYL (Rs. 220 million). Foreign selling topped in HNB.N at Rs. 28.7 million.

First Capital said the Colombo bourse experienced a continued downturn as most of the banking sector stocks and mid-cap companies exerted negative pressure on the index as ASPI concluded the week in red for the fourth consecutive session, closing at 11,727, down by 41 points. 

HNB, SAMP, NDB and DFCC coupled with SFCL emerged as the major negative contributors. Turnover witnessed a 30.3% decrease from Thursday and marked a 45.5% decline from the month’s average amidst the low involvement of HNWI and retail investors. The Capital Goods sector led the turnover with 54%, followed by the Food, Beverage and Tobacco and Banking sectors jointly contributing 26% to the overall turnover. 

NDB Securities said crossings were witnessed in Hayleys and John Keells Holdings accounting for 41.7% of the turnover. Mixed interest was observed in Hatton National Bank, Hayleys Fabric and Distilleries whilst retail interest was noted in Browns Investments, LOLC Finance and Softlogic Holdings.

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys and John Keells Holdings) whilst the sector index edged down by 0.03%. The share price of Hayleys increased by 75 cents to Rs. 101. The share price of John Keells Holdings closed flat at Rs. 194.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Distilleries) whilst the sector index decreased by 0.20%. The share price of Distilleries lost 10 cents to Rs. 26.40.

Hatton National Bank and Hayleys Fabric were also included amongst the top turnover contributors. The share price of Hatton National Bank recorded a loss of Rs. 2 to Rs. 192.00. The share price of Hayleys Fabric declined by 40 cents to Rs. 45.50.