CSE’s dismal run persists

The dismal run of the Colombo stock market continued with indices turning negative though turnover and volume picked up yesterday.

Both indices were down by over 0.5%. Turnover was Rs. 1 billion involving 68.4 million shares.

Asia said indices extended their downward momentum for the third consecutive session amidst increased turnover driven by off-board transactions in VLL (Rs. 129mn) and SDB (Rs. 110mn).

It said CALT (-3.2%), GRAN (-4.7%), JKH (-1.2%), DIST (-5.3%), CFVF (-1.4%), HNBN (-1.2%), and FCT (-2.1%) closed in red. Nevertheless, EXPO (+1.3%), WATA (+1.0%), and LHCL (+1.8%) edged higher during the session. Following a drop to 10,642 (-82 points), the ASPI entered a range-bound phase, fluctuating between 10,650 and 10,750 throughout the rest of the session. The breadth of the market remained negative with 47 price gainers and 132 decliners.

Foreigners generated a net outflow of Rs. 120mn for the day driven by VLL (Rs. 129mn). Net foreign buying topped in JKH at Rs. 23.6mn.

First Capital said the Bourse extended its losses with a decline of over 60 points for the third  consecutive day with price drop observed across the board as investors awaited clarity on the interest rate movements ahead of the  monetary policy announcement scheduled on 23 November 2023.

The index took a steep fall to an intraday low of 10,638 as bearish sentiment extended on index heavy weights mainly JKH, HAYL and Banks and closed for the day at 10,662, losing 62 points. Despite the market downturn, active collection was observed on LION following a dividend announcement of Rs. 31 per share, while JKH witnessed selling pressure subsequent to the disclosure of the termination of its GDR Program.

NDB Securities said high net worth and institutional investor participation was noted in Vidullanka, Sanasa Development Bank, and John Keells Holdings. Mixed interest was observed in Capital Alliance, Expolanka Holdings and Ceylon Grain Elevators whilst retail interest was noted in First Capital Holdings, First Capital Treasuries and Lanka Milk Foods.

The Diversified Financials sector was the top contributor to the market turnover (due to Capital Alliance) whilst the sector index lost 0.40%. The share price of Capital Alliance moved down by Rs. 2.20 to Rs 66.20.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Ceylon Grain Elevators) whilst the sector index decreased by 0.42%. The share price of Ceylon Grain Elevators recorded a loss of Rs. 8.50 to Rs 171.50.

Vidullanka, Sanasa Development Bank and John Keells Holdings were also included amongst the top turnover contributors. The share price of Vidullanka closed flat at Rs 6.90. The share price of Sanasa Development Bank lost Rs 1.40 to Rs 32.10. The share price of John Keells Holdings declined by Rs 2.25 to Rs 189.75.

Separately, Asia Siyaka Commodities announced its interim dividend of 20 cents per share.