CSE’s benchmark ASPI dips to YTD negative return first time this year

The Colombo stock market suffered its latest setback yesterday when the benchmark ASPI slipped to a negative return YTD for the first time for 2024.

Amidst bearish sentiments, the ASPI declined by 0.65% thereby relegating itself to a YTD negative return of 0.78. The active S&P SL20 fell sharply by 1.17% and expanded its YTD negative return further to 4.74%

Turnover yesterday was Rs. 1 billion involving 28 million shares.

First Capital said the broad market continued its decline for the fourth consecutive day, driven by significant price drops in COMB, JKH, SAMP and HNB. Selling pressure prevailed throughout the session, causing ASPI to exhibit bearish sentiment from the start.

Although the index saw a slight recovery after midday, it ultimately closed at 10,571, down by 92 points. Selected Banking sector counters led by COMB, SAMP, HNB and DFCC and blue-chip led by JKH, emerged as the top negative contributors to the index.

Amidst the improved participation of both retail and HNW investors, turnover marked a 46.9% increase from the monthly average. Off-board transactions accounted for 39.7% of the total turnover. The Capital Goods sector contributed 46% to the overall turnover whilst the Banking and Diversified Financials sectors jointly contributed 36% to the total turnover. Foreign investors remained net buyers, recording an inflow of Rs. 131.1 million.

NDB Securities said the indices closed in red as a result of price losses in counters such as Commercial Bank, John Keells Holdings and Sampath Bank.

High net worth and institutional investor participation was noted in John Keells Holdings, Richard Pieris & Company and Alliance Finance Company. Mixed interest was observed in Hatton National Bank, Commercial Bank and Chevron Lubricants whilst retail interest was noted in Industrial Asphalts, Browns Investments and Hela Apparel Holdings Rights.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Richard Pieris & Company) whilst the sector index lost 1.36%. The share price of John Keells Holdings decreased by Rs. 3 to Rs. 161. The share price of Richard Pieris & Company moved down by 50 cents to Rs. 20.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank and Commercial Bank) whilst the sector index decreased by 1.56%. The share price of Hatton National Bank lost Rs. 2 to Rs. 157. The share price of Commercial Bank recorded a loss of Rs. 1.30 to Rs. 80.40.

Alliance Finance Company was also included amongst the top turnover contributors with its share price closing flat at Rs. 100.