CSE falls to lowest since April; Rs. 144 b in value wiped out

The bearish run persisted as the Colombo stock market began a fresh week slumping to lowest level since April.

Both indices were down by over 0.4% whilst turnover was Rs. 686.7 million involving 43 million shares.



Since the end of April, the value of CSE has plunged by 144 billion from Rs. 4,893 billion to Rs. 4,749 billion.

May also suffered the first dip in four months this year. However year to date the ASPI has given a 13% return in terms of ASPI and 15.8% as per S&P SL20, but down from 16% and 20% respectively as at end April.  First Capital said the bourse continued its course in a negative direction amidst another day of low sentiment and uncertainty. 

The ASPI closed at 12,050, falling to its lowest levels since April, marking a 0.46% decrease from the previous day, to which the most significant contributors were MELS, JKH, CTC, LOLC, and BIL. Conversely, COMB, HAYL, ASPH, ABL, and NTB were the most significant positive contributors towards ASPI. 

“Increased volatility and negative activity within the market can be attributed towards reactions and sentiment following the release of Interim Financial Statements. Additionally, the lack of crossings further reflects a decline in investor sentiment, and a dwindling interest from HNWI,” First Capital said. 

It said turnover fell to its lowest levels in the past week and experienced a 41.2% decrease from Friday where the Food, Beverage and Tobacco sector led turnover at 21%, followed by the Capital Goods, and Materials sectors jointly contributing to 27% of overall turnover, further exhibiting diminished activity within the market. The market overall experienced a day of limited activity and sentiment amidst uncertainty.

Asia Securities said the indices commenced the week on a low note dragged by BIL (-3.3%), LOLC (-1.8%), CINS (-2.2%), TKYO (-1.1%), PABC (-1.4%), and LOFC (-1.6%).  MELS (-10 points) and CTC (-9 points) ended as the biggest laggards on the ASPI. The breadth of the market was negative with 64 price gainers and 109 decliners.

Turnover was led by BIL (Rs. 74 million), DIAL (Rs. 72 million), and HAYL (Rs. 35 million).

Foreigners recorded a net outflow of Rs. 68.4 million. Net foreign buying topped in LOLC at Rs. 15.6 million and selling topped in DIAL at Rs. 69.7 million.

NDB Securities said high net worth and institutional investor participation was noted in Dialog Axiata, Dipped Products and CIC Holdings nonvoting. Mixed interest was observed in Browns Investments, Hayleys and LOLC Holdings whilst retail interest was noted in Hela Apparel Holdings, Beruwala Resorts and SMB Leasing. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments) whilst the sector index lost 0.72%. The share price of Browns Investments decreased by 20 cents to Rs. 5.90.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys) whilst the sector index decreased by 0.96%. The share price of Hayleys moved up by 90 cents to Rs. 94.00.

Dialog Axiata, LOLC Holdings and Dipped Products were also included amongst the top turnover contributors. The share price of Dialog Axiata closed flat at Rs. 11.10. The share price of LOLC Holdings recorded a loss of Rs. 8.25 to Rs. 449.75. The share price of Dipped Products closed flat at Rs. 34.