CSE suffers another week of losses

The Colombo stock market suffered another week of losses as investor sentiment remained bearish owing to macro concerns.

The benchmark ASPI lost 174.09 points (1.58%) during the week while the active S&P SL20 lost 58.70 points (1.89%). Average daily turnover was Rs. 972 million. In the previous week the ASPI and the S&P SL20 lost 3.1% and 3.0% respectively whilst recording an average daily turnover of Rs. 739.8 million.

On Friday, the ASPI declined by over 5 points whilst S&P SL20 inched up 1.5 points. Turnover was Rs. 823 million involving 39 million shares.

Asia Securities said following a positive start to the session, the ASPI moved downwards and remained range-bound for the remainder of the session weighed down by LIOC (-4.2%), ACL (-2.2%), CFIN (-2.7%), NTBN (-0.5%), HAYL (-0.5%), and NTBN (-0.5%). However, JKH (+1.0%), CFVF (+1.7%), WINDN (+2.2%), CICN (+1.2%), CICX (+1.6%), and SCAP (+2.1%) recorded price increases that helped cushion the decline in the ASPI.

The ASPI initially reached a high of 10,853 (+35 points), however subsequently declined to 10,801 (-17 points) before settling within the range of 10,810 to 10,830. Overall, 72 stocks ended in green while 94 settled with losses.

Turnover was led by JKH (Rs. 170 million), CFVF (Rs. 82 million), and FCT (Rs. 66 million). 

Asia also said foreigners recorded a net inflow of Rs. 53.6 milion. Net foreign buying topped in JKH at Rs. 83.9 million and selling topped in WIND at Rs. 19 million.

First Capital said the ASPI concluded the day flat, losing 5 points as investors took a cautious stance in anticipation of the forthcoming budget announcement. With mixed investor sentiment, the index spiked by over 30 points in the beginning, yet failed to sustain the momentum falling to near 10,800 level and closing the day at 10,813. 

Part of the lost momentum was regained post mid-day with the active participation observed on index heavyweights. Notably, as the weighted average yields at the bill and bond auctions displayed a declining trend in line with the policy rate cut, buoyed collection was witnessed on the Treasury counters whilst on the other hand, selling pressure persisted in the banking sector on concerns due possible taxation from the upcoming budget 2024. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings and LB Finance. Mixed interest was observed in First Capital Holdings, First Capital and Asian Hotels and Properties whilst retail interest was noted in Eden Hotel Lanka, Nation Lanka Finance and SMB Leasing nonvoting. 

The Diversified Financials sector was the top contributor to the market turnover (due to First Capital Holdings, First Capital Treasuries and LB Finance) whilst the sector index lost 1.03%. The share price of First Capital Holdings gained by 90 cents to Rs. 53.70. The share price of First Capital Treasuries moved down 10 cents to Rs. 41.70. The share price of LB Finance recorded a loss of 30 cents to Rs. 63.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 0.45%. The share price of John Keells Holdings increased by Rs. 2 to Rs. 193.

Asian Hotels and Properties was also included amongst the top turnover contributors. The share price of Asian Hotels and Properties closed flat at Rs. 60.