CSE reverts to negative territory

Wednesday’s welcome rebound of the Colombo stock market after 12 days of losses was short lived as indices turned negative yesterday, though turnover remained above Rs. 1 billion mark for the third consecutive session.

Both indices declined by 0.3% after having gained by over 1.5% the previous day. Turnover yesterday was, Rs. 1.5 billion involving 62.7 million shares.

First Capital said the broad market failed to sustain the recovery of the previous day as selling pressure emerged after the first few trading hours amidst the losing investor sentiment. The ASPI started the session on a steady note and reached an intra-day high of 10, 971. However, after the first few trading hours the index witnessed a long-lived downtrend to close the day at 10,801, losing 36 points.

The blue-chip companies exerted a negative pressure on the index whilst DIAL, MELS, HHL, DFCC and LOLC emerged as the top negative contributors to the index.

Turnover was 99.7% higher than the monthly average of Rs. 748.5 million with multiple crossings accounting for 35.3% of the total. 

The Capital Goods sector contributed 38% to the overall turnover whilst Banking and Telecommunication Services sectors jointly contributed 43%. Foreign investors turned net buyers, recording an inflow of Rs. 11.4 million amidst low participation.

NDB Securities said indices closed in red as a result of price losses in counters such as Dialog Axiata, Melstacorp and Hemas Holdings.

High net worth and institutional investor participation was noted in Hemas Holdings, Hatton National Bank and John Keells Holdings.

Mixed interest was observed in Dialog Axiata, Sampath Bank and Commercial Bank whilst retail interest was noted in Browns Investments, LOLC Finance and SMB Leasing.

The Capital Goods sector was the top contributor to the market turnover (due to Hemas Holdings and John Keells Holdings) whilst the sector index lost 0.40%. The share price of Hemas Holdings decreased by Rs. 2 to Rs. 70.10. The share price of John Keells Holdings recorded a loss of 75 cents to Rs. 166.25.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank and Commercial Bank) whilst the sector index edged down by 0.03%. The share price of Hatton National Bank moved up by 25 cents to Rs. 164.75. The share price of Commercial Bank closed flat at Rs. 86.

Dialog Axiata was also included amongst the top turnover contributors with its share price losing 30 cents to Rs. 8.50.