CSE loses Rs. 140 b in value post-Budget

The Colombo stock market has seen a Rs. 140 billion in value wiped off since the 2024 Budget presentation on 13 November by President and Finance Minister Ranil Wickremesinghe.

Market capitalisation on Budget day was Rs. 4,376 billion whilst by yesterday it had reduced to Rs. 4,237 billion as the market suffered its sixth consecutive day of decline.

The benchmark ASPI was down by over 38 points and the S&P SL20 by over 5 points. Turnover was Rs. 912.5 million involving 28.6 million shares.

Asia Securities said the market sustained downward movement with the ASPI retesting the 10,500 level for the third time. The Moving Average Convergence/Divergence (MACD) indicator signals positive divergence, and the Relative Strength Index (RSI) is approaching the oversold zone, implying a critical juncture in the market ahead of the scheduled monetary policy review on Friday (24). 

It said price losses in CALT (-2.1%), MGT (-1.5%), GRAN (-2.4%), LMF (-3.4%), and NTBN (-2.0%) contributed to the downward pressure on the indices. On a positive note, COMBN (+1.2%), LHCL (+2.4%), SLTL (+1.2%), and DIPD (+1.4%) saw price increases, offering some respite during the session. Major drivers for the day were COMBN (+6 points) and CARG (+5 points) while MELS (-8 points) and EXPO (-5 points) ended as the biggest laggard on the indices.

Market turnover was supported by off-board transactions in CFLB (Rs. 112 mn), LIOC (Rs. 75 mn), and TJL (Rs. 38 mn). 

Asia also said foreigners recorded a net outflow of Rs. 30.7 mn. Net foreign buying topped in COMB.N at Rs. 11.1 mn and selling topped in CARG.N at Rs. 55.3 mn.

First Capital said the Bourse closed recording the 6th consecutive loss over sidelined participation as ambiguity rose among investors on the macro front with concerns spanning on the IMF board level approval for the second tranche and the External Debt Restructuring.

It said although the index remained on an upscale till mid-day, gradually it tailed low on the back of heightened selling on MELS, EXPO and LIOC and closed at 10,508 losing 39 points.

Institutional interest clustered on big caps such as HAYL, SAMP, LIOC and TJL. Investor sentiment remained fairly positive on Banking counters following healthy quarter performance while Hotel sector counters gathered mild interest amid the pick-up in tourist arrivals.

Turnover inched 10% below the monthly average (Rs. 1 bn) dominated by a joint contribution of 52% stemming from the Capital Goods (24%), Banking (14%) and Consumer Durables (14%) sectors. Off-board transactions comprised 32% of the overall turnover led by CFLB and LIOC.

Moreover, foreign participation too slacked with investors remaining net sellers for the sixth straight day.

NDB Securities said high net worth and institutional investor participation was noted in The Colombo Fort Land & Building, Lanka IOC and Teejay Lanka. Mixed interest was observed in Sampath Bank, Hayleys and John Keells Holdings whilst retail interest was noted in Capital Alliance, Browns Investments and Lanka Milk Foods.

The Capital Goods sector was the top contributor to the market turnover (due to The Colombo Fort Land & Building) whilst the sector index edged down by 0.02%. The share price of The Colombo Fort Land & Building lost 90 cents to Rs. 27.10.

The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank) whilst the sector index decreased by 0.34%. The share price of Sampath Bank recorded a loss of 20 cents to Rs. 66.40.

Lanka IOC, Teejay Lanka and Cargills were also included amongst the top turnover contributors. The share price of Lanka IOC decreased by Rs. 3 to Rs. 100.50. The share price of Teejay Lanka closed flat at Rs. 34.60. The share price of Cargills appreciated by Rs. 9.75 to Rs. 370.