CSE marks yet another week of decline

The Colombo stock market ended yet another week of decline though lower in comparison to the previous one as investor sentiment remained weak and most locals inactive.

The more active S&P SL20 lost 207 points or 7.3% whilst the benchmark All Share Price Index was down by 336 points or 4%. Yesterday the ASPI declined by 1.4% and the S&P SL20 by 1.7% with turnover being Rs. 1.25 billion below the weekly average of turnover of Rs. 1.55 billion involving 58.4 million shares.

In the previous week the market crashed with ASPI dipping by 19% and S&P SL20 by 22%.

Asia Securities said the indices closed lower for the third consecutive session yesterday due to price declines in COMB (-4.2%), SAMP (-2.7%), HNB (-3.2%), and CARG (-8.7%). Turnover was led by EXPO (Rs. 472 million), BIL (Rs. 98 million) and HAYL (Rs. 73 million). 

Net foreign inflow was recorded for the fourth consecutive session at Rs. 31 million supported by MELS (Rs. 11 million), LLUB (Rs. 10 million) and EXPO (Rs. 6 million). 

“Earlier, the ASPI commenced the session on a downbeat note, reaching an intra-day low of 8,073 (-177 points). Subsequently, the index witnessed a sharp recovery to 8,252 (+179 points), however, reversed gains thereupon to close the session in red. Overall, 64 stocks ended higher while 124 ended lower,” Asia added.

First Capital said the bourse ended the week in the negative territory for the third consecutive session while ASPI dropped to a seven and half month low. 

“The Index displayed a short upswing in the beginning but failed to sustain the trend afterwards. As the majority of the banking sector counters started to plunge amidst the concerns over possible negative effects on borrowers and resultant defaults stemming from a potential aggressive monetary policy tightening, index witnessed a straight decline in the early hour of the session. 

“Following a prompt recovery, the index gradually moved down while closing the day at 8,135, losing 114 points,” First Capital said, adding turnover was largely led by the Transportation sector followed by the Capital Goods sector with a joint contribution of 57%. 

NDB Securities said high net worth and institutional investor participation remained subdued for the day whilst mixed interest was observed in Expolanka Holdings, Hayleys and LOLC Holdings whilst retail interest was noted in Browns Investments, SMB Leasing voting and LOLC Finance. 

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index lost 0.52%. The share price of Expolanka Holdings decreased by 75 cents (0.50%) to close at Rs. 150.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys and John Keells Holdings) whilst the sector index decreased by 0.99%. The share price of Hayleys moved down by 70 cents (0.98%) to close at Rs. 70.60. The share price of John Keells Holdings

declined by Rs. 1.75 (1.23%) to close at Rs. 140.25.

Browns Investments and LOLC Holdings were also included amongst the top turnover contributors. The share price of Browns Investments gained 10 cents (1.67%) to close at Rs. 6.10. The share price of LOLC Holdings recorded a loss of Rs. 3.25 (0.82%) to close at Rs. 395.50.