CSE remains bearish amidst profit taking, foreign selling

The Colombo stock remained bearish amidst profit taking and re-rating of prospects whilst foreigners too remained net sellers.

The active S&P SL20 declined by 1.6% and the benchmark ASPI by 1.5%. Turnover was Rs. 2 billion involving 86.4 million shares.

Asia Securities said the indices closed in red for a third consecutive session as banking counters extended price declines on the back of continued profit-booking. ND BILLION (-5.6%), (COM BILLION (-4.2%), COMBX (-5.3%), HNBX (-6.5%), HN BILLION (-3.8%), SAMP (-2.4%), DFCC (-4.3%), PABC (-3.5%), and SEYBX (-4.1%) ended sharply lower while heavyweights HAYL (-1.4%), MELS (-3.0%), LOFC (-1.8%), VONE (-2.5%), and LOLC (-1.0%) also moved downwards adding pressure on the indices during the session. However, SCAP (+4.3%), AAIC (+6.8%), and CFIN (+5.4%) recorded price gains in an otherwise negative session. Overall, 58 stocks closed in green while 141 settled with losses.

Turnover was led by SCAP (Rs. 248 million), SAMP (Rs. 192 million), and EXPO (Rs. 169 million).  

Foreigners recorded a net outflow of Rs. 103.1 million. Net foreign buying topped in PLC at Rs. 9.6 million and selling topped in SAMP.N at Rs. 115.8 million.

First Capital said the bourse extended its streak of price declines for the third consecutive day as investors chose to book profits on selected counters, mainly Banking sector (COMB, HNB and SAMP) on the back of inflated selling pressure after the significant gain recorded in the previous sessions. On the other hand, revitalised interest was witnessed in CFIN and PLC, leading the positive contributors after the GoSL lifted the import ban on heavy vehicles (buses, trucks and tankers) for the first time since March 2020.

Although the index remained flat at the beginning of the session, negative sentiment outweighed the market and closed the day at a 3-week low of 11,224, losing 168 points. As the retail participation slowed down, turnover skid to a 1-week low and was largely led by Banking, Diversified Financials and Insurance sectors with a joint contribution of 63%. In the midst of the selling spree on the Banks, foreign investors remained net sellers yet, YTD net foreign inflow remained above Rs. 4.5 billion mark.

NDB Securities said high net worth and institutional investor participation was noted in Expolanka Holdings, and John Keells Holdings. Mixed interest was observed in Sampath Bank, Capital

Alliance and Softlogic Life Insurance whilst retail interest was noted in Softlogic Capital, People’s Leasing & Finance and UB Finance Company.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank) whilst the sector index lost 3.61%. The share price of Sampath Bank lost Rs. 1.80 to Rs. 72.80.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Softlogic Capital and Capital Alliance) whilst the sector index edged down by 0.03%. The share price of Softlogic Capital increased by 50 cents to Rs. 12.10. The share price of Capital Alliance recorded a gain of Rs. 1.40 to Rs. 60.40.

Expolanka Holdings and Softlogic Life Insurance were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved down by 50 cents to Rs. 145.00. The share price of Softlogic Life Insurance appreciated by Rs. 5 to Rs. 78.

Separately Alumex and Bukit Darah announced their dividends of 25 cents and Rs. 1.80 per share respectively.