CSE sees subdued week despite IMF, 2024 Budget boost

The Colombo stock market saw a subdued week despite positives such as IMF approving the second tranche of $ 337 million and the 2024 Budget being passed by the Parliament. 

The benchmark ASPI declined by 51.76 points (0.48%) and the active S&P SL20 edging down 0.35 points (0.01%) lower.

In the previous week ASPI gained by 0.7% and the S&P SL 20 by 1.8%. 

Turnover this week averaged Rs. 763 million, marginally up from Rs. 763 million in the previous week.

Asia Securities said the market on Friday ended the week on a subdued note due to lower levels of activity. Front-line stocks EXPO (-2.1%), LIOC (-3.2%), DIST (-1.4%), and TKYOX (-2.5%) closed in red due to profit-booking as the market approached the festive season. Nevertheless, GLAS (+1.9%) saw steady buying while AGAL (+2.9%), MGT (+1.0%), and DFCC (+1.1%) recorded price gains in an otherwise negative session. Overall, 49 stocks closed in green while 95 settled with losses.

Turnover came in at Rs. 509 million (previous session Rs. 674 million) led by AGPL (Rs. 61 million), EXPO (Rs. 50 million), and COMBN (Rs. 29 million). 

Foreigners recorded a net outflow of Rs. 47.4 million. Net foreign buying topped in GLAS at Rs. 11.8 million and selling topped in UBF at Rs. 16.9 million. 

First Capital said in the market, retail participation took the stage, causing the index to continue a downward trajectory for the 3rd consecutive day and step into the red territory at 10,742, with a 42-point descent. 

“Investors adopted a wait-and-see approach ahead of the holiday season whilst slight profit taking was also visible during the day,” First Capital said. 

The banking sector, spearheaded by DFCC, COMB, and ABL contributed positively to the index, whilst profit-booking was observed on SAMP and HNB. Additionally, blue-chip counters including EXPO, LIOC, and JKH also observed profit taking during the day and contributed to the index’s downturn. Furthermore, AGPL dominated the day’s turnover, driven by two off-board transactions which resulted in a 1.6% stake change, involving 8 million shares at Rs. 7.50 per share. Despite this, overall market turnover also dwindled for the 3rd consecutive day amounting to 43.8% lower than the monthly average turnover of Rs. 905.3 million. The Food, Beverage and Tobacco and Banking sectors jointly accounted for 45% of the total turnover.

NDB Securities said high net worth and institutional investor participation was noted in Agarapatana Plantations. Mixed interest was observed in Expolanka Holdings, Commercial Bank and UB Finance Company whilst retail interest was noted in Amana Bank, Browns Investments and SMB Leasing voting and nonvoting. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Agarapatana Plantations and Ceylon Grain Elevators) whilst the sector index lost 0.21%. The share price of Agarapatana Plantations closed flat at Rs. 7.60. The share price of Ceylon Grain Elevators appreciated by Rs. 4.25 to Rs. 169.75.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank and Sampath Bank) whilst the sector index decreased by 0.30%. The share price of Commercial Bank moved up by 30 cents to Rs. 93.90. The share price of Sampath Bank recorded a loss of 40 cents to Rs. 71.40.

Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 3 to Rs. 141.25.