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 0.9% and the active S&P SL20 by 1.5%, whilst on Friday, the S&P SL20 declined by 0.7% and ASPI by 0.2%.

Turnover during the week averaged Rs. 1.03 billion though yesterday it was Rs. 449 million involving 22.7 million shares.

Asia Securities said the market ended the week on a low note, with the indices remaining in the red. The decline was led by COMBN (-2.3%), HNBN (-0.9%), CCSN (-0.6%), WIND (-0.5%) and JKH (-0.5%). Market turnover amounted to Rs. 449 million, compared to Rs. 1.5 billion in the previous session, led by WIND (Rs. 50mn). COMB (-14 points), HNBN (-5 points) and LOLC (-3 points) ended as the biggest laggards on the ASPI, while CTC (+5 points) provided support for the index during the session. Overall, 61 stocks ended in green while 81 settled with losses.

First Capital said the Colombo Bourse failed to recover from the yesterday’s loss as investors maintained the lackluster sentiment amidst lingering uncertainties surrounding the political environment in the country. The ASPI lost 93 points collectively during this week, compared to the loss of 493 points in the previous week. The index displayed a high volatility from beginning of the trading session and fell to an intraday low of 10,759. However, the index recovered at the end and closed the day at 10,776, losing only 25 points. 

Selected Banking sector counters and index-heavy weights dragged the market down, whilst COMB, HNB, LOLC, HAYL and JKH emerged as the top negative contributors to the index. Amidst low participation of both retail and HNW investors compared to the previous sessions, turnover plunged a one-month low and recorded at Rs. 449.5 million, marking a 42.4% decrease from the monthly average standing at Rs. 781 million. The Capital Goods sector contributed 24% to the overall turnover whilst Banking and Food, Beverage and Tobacco sectors jointly contributed 37% to the total turnover. Foreign investors turned net sellers, recording an outflow of Rs. 43.1 million.

NDB Securities said indices closed in red as a result of price losses in counters such as Commercial Bank, Hatton National Bank and LOLC Holdings with the turnover crossing Rs. 449 million. 

High net worth and institutional investor participation was noted in Windforce, Ceylon Grain Elevators, and Cable Solutions. Mixed interest was observed in John Keells Holdings, Commercial Bank and Hatton National Bank, whilst retail interest was noted in Co-Operative Insurance Company, SMB Leasing nonvoting and SMB Leasing. 

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

During the week, the ASPI and the S&P SL 20 lost 0.9% and 1.5% respectively, whilst recording an average revenue of Rs. 1.03 billion.

Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 0.42%. The share price of John Keells Holdings lost 75 cents to close at Rs. 165.50.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank) whilst the sector index decreased by 1.12%. The share price of Commercial Bank recorded a loss of Rs. 2 to close at Rs. 84. Windforce Limited, Ceylon Grain Elevators and Cable Solutions were also included amongst the top turnover contributors. The share price of Windforce Limited decreased by 10 cents to close at Rs. 19.40. The share price of Ceylon Grain Elevators moved up by Rs. 1.50 to close at Rs. 157.75. The share price of Cable Solutions appreciated by 30 cents (4.23%) to close at Rs. 7.40.