CSE plunges with second highest YTD loss

The Colombo stock market yesterday plunged further as investor sentiment remained wary amidst low turnover.

The active S&P SL20 declined by 2.3% and the benchmark ASPI by 1.67%.

“The ASPI halted the day in red at 11,252 plummeting to an over 4-month low, losing 191 points marking the year to date second highest loss,” said First Capital.

Turnover was Rs. 863.8 million involving 45.7 million shares. First Capital said the Colombo Bourse struggled to maintain the momentum of the previous week, with both indices closing the day in red. 



Banking sector companies and conglomerates dragged the indices down steeply amidst the uncertainties surrounding the upcoming election. Notably, COMB experienced selling pressure ahead of tomorrow – the final day of the renunciation of its rights shares, leading to a 27-point drop in the ASPI.

With the mixed participation from the HNWIs and retail investors, turnover marked a 13.8% decrease from the month’s average. The Food, Beverage and Tobacco sector contributed 26% to the turnover, followed by the Capital Goods and Banking sectors jointly contributing 39% to the overall turnover. Foreign investors remained net buyers, with a net inflow of Rs. 8.9 million.

NDB Securities said indices closed in red as a result of price losses in counters such as Commercial Bank, Hatton National Bank and Sampath Bank. High net worth and institutional investor participation was noted in Nations Trust Bank, Melstacorp and Ceylon Cold Stores. Mixed interest was observed in John Keells Holdings, Sunshine Holdings and Hayleys whilst retail interest was noted in Browns Investments, Industrial Asphalts and LOLC Finance.

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Melstacorp and Sunshine Holdings) whilst the sector index lost 1.37%. The share price of Melstacorp moved down by Rs 1.60 to Rs 79. The share price of Sunshine Holdings recorded a loss of Rs 2.50 to Rs. 58.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index decreased by 1.68%. The share price of John Keells Holdings gained Rs 2.75 to Rs. 178. The share price of Hayleys declined by Rs. 3.60 to Rs. 95.60.

Nations Trust Bank was also included amongst the top turnover contributors with its share price declining by one Rupee to Rs. 120.