CSE suffers another week of losses

The Colombo stock market suffered another week of losses yesterday with bearish investor sentiment amidst concerns over the outcome of next month’s Presidential Election. 

During the week, the benchmark ASPI lost 4.7% and the active S&P SL20 by 6.3%. On Friday, the S&P SL20 declined by 0.38% and ASPI by 0.36%.

Turnover during the week averaged 

Rs. 704 million though yesterday it was 

Rs. 759 billion involving 38 million shares.

First Capital said closing the week, ASPI continued to fall lower marginally for the 10th consecutive time, as panic selling was observed majorly on selective banking sector counters and blue-chip stocks. 

Accordingly, the index displayed a downtrend since the beginning of the session and closed on Friday at 10,869, losing 39 points. 

The Banking sector counters, and blue-chip entities exerted negative pressure on the index as HNB, JKH, CTC, RICH and VFIN emerged as the top negative contributors to the index. 

Turnover decreased compared to the previous session and recorded at Rs. 759.4 million, marking a 7.7% decrease from the monthly average standing at Rs. 822.5 million amidst mixed participation. 

The Food, Beverage and Tobacco sector alone contributed 32% to the total market turnover, whilst Banking and Capital Goods sectors jointly contributed 44% to the total turnover. 

Furthermore, RAL traded 62.8 million shares at Rs. 2.8/share representing a 7.9% stake through an off-board transaction, which contributed 23.2% to the total turnover. 

Foreign investors turned net buyers with a net inflow of Rs. 0.4 million.

NDB Securities said ASPI closed in red as a result of price losses in counters such as Hatton National Bank, John Keells Holdings and Ceylon Tobacco Company with the turnover crossing Rs. 759 million. A similar behaviour was witnessed in the S&P SL20. 

High net worth and institutional investor participation was noted in Commercial Bank and Hatton National Bank. Mixed interest was observed in Sampath Bank, John Keells Holdings and Hayleys whilst retail interest was noted in SMB Leasing non-voting, Browns Investments and LOLC Finance. 

Foreign participation in the market activity remained at subdued levels with foreigners closing as net buyers.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Renuka Agri Foods) whilst the sector index lost 0.14%. The share price of Renuka Agri Foods increased by 10 cents (3.45%) to close at Rs 3.00. The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank, Hatton National Bank and Commercial Bank) whilst the sector index decreased by 0.25%. The share price of Sampath Bank gained 60 cents to close at Rs. 70.20. The share price of Hatton National Bank moved down by Rs. 5.25 to close at Rs. 168.00. The share price of Commercial Bank appreciated by 70 cents to close at Rs 86.60.

John Keells Holdings was also included amongst the top turnover contributors. The share price of John Keells Holdings recorded a loss of Rs. 2.75 to close at Rs. 169.25.