CSE reverts to bearish mode; lacklustre investor activity persists

The Colombo stock market yesterday reverted to bearish mode with both indices down by 0.4% amidst low investor activity.

Turnover was Rs. 711 million involving 31.8 million shares.

Asia Securities said following four straight sessions of upward movement, the indices closed in red as investors opted to cash in on modest profits in front-line stocks.

The ASPI opened with a gap-up of 22 points to 10,766, however reversed course and moved downwards throughout the session weighed by price declines in CALT (-4.3%), CFVF (-3.2%), CFIN (-2.1%), MGT (-1.0%), DFCC (-1.4%), and NTBN (-1.2%).

COMB (-8 points), SAMP (-4 points), and HNBX (-4 points) ended as the biggest laggards on the index. Notably, the trading suspension on Softlogic Holdings PLC has now been lifted, following the submission of interim financial statements by the company. However, the stocks closed 43.4% lower due to heavy selling pressure during the session. In a post-market update, NDB announced that the Rs. 5 billion debenture issue was oversubscribed, and the market will be informed about the basis of allotment in due course.

Turnover was led by JKH (Rs. 111 million), followed by EXPO (Rs. 44 million), and SAMP (Rs. 43 million).

Asia also said foreigners recorded a net inflow of Rs. 88.4 million. Net foreign buying topped in JKH at Rs. 61.4 million and selling topped in CARG at Rs. 18 million.

First Capital said the Bourse closed in the red zone after a good run of four consecutive sessions in the positive. Index started off strong but gradually started its decline straight after and continued this trend till the end of the session as investors chose to take profits in counters such as COMB and DFCC which were the major contributors to the ASPI’s decline.

The market could also be seeing a correction occurring as the past four session’s overinflated prices of counters, and hence the market closed with a 44 point fall at 10,700.

The Capital Goods and the Food, Beverages & Tobacco sectors were the largest contributors to the overall market turnover with a joint contribution of 44%.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, LOLC Holdings and Distilleries. Mixed interest was observed in Expolanka Holdings, Ceylon Grain Elevators and People’s Leasing & Finance whilst retail interest was noted in Softlogic Holdings, Capital Alliance and Browns Investments.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 0.23%. The share price of John Keells Holdings increased by Rs. 1.25 to Rs. 193.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index decreased by 0.45%. The share price of Browns Investments declined by 10 cents to Rs. 4.80.

Expolanka Holdings, Sampath Bank and LOLC Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 1.25 to Rs. 130.75. The share price of Sampath Bank moved down 50 cents to Rs. 71. The share price of LOLC Holdings recorded a loss of Rs. 1.50 to Rs. 377.50