CSE suffers biggest YTD monthly loss in May

The Colombo stock market suffered its biggest monthly loss in May of 5% marking second consecutive month of declines as investor sentiment remained besieged with lacklustre activity.

In terms of the benchmark ASPI, the dip in May was 4.8%, up from 3.4% in April. However, on the basis of the active S&P SL20, May saw a sharper decline of 7.5% as against 2.4% decline in April.

Year to date, the S&P SL20 has given a negative return of 8% whilst ASPI has managed to survive with 0.7% gain. By the end April the S&PSL20 was down by 0.6% whilst ASPI was up 5.8%.

Average daily turnover in May was Rs. 666 million, down from Rs. 878 million.

Latest performance also proves that SEC and CSE decision to restore trading hours to pre-COVID level hadn’t been wise.

Reaffirming the market’s struggle, indices managed to eke out a gain yesterday though amidst thin volumes.

The benchmark ASPI gained by 0.26% or over 22 points and the active S&P SL20 by less than one point. Turnover was Rs. 349 million involving 33.8 million shares. 

Asia Securities following four sessions of price declines, the indices edged higher with the ASPI closing with a gain of 23 points (+0.3%). Turnover reached a two-week low, dropping below Rs. 500 million as investors remained on the sidelines awaiting today’s Monetary Policy Review meeting. 

JKH topped the turnover list (Rs. 36 million), followed by LIOC (Rs. 31 million), and LOFC (Rs. 25 million). Notable price losses were recorded by BIL (-2.0%), EXPO (-1.3%), ACL (-1.9%), and TKYON (-1.4%) while AAIC (+1.4%), LLUB (+1.7%), CDBN (+2.4%), CICX (+1.4%), SCAP (+1.4%), and RCL (+2.8%) closed in green. The breadth of the market was positive with 99 price gainers and 66 decliners.

First Capital said the market commenced the day on a high note but failed to keep up the momentum towards the latter part of the session due to the mixed sentiments observed during the day. Furthermore, both ASPI and S&P indices shifted their course after 4 trading sessions and halted in the green zone at 8,555 gaining 23 points.

VONE alongside with LIOC contributed to the index positively as EXPO and BIL were among the negative contributors. Moreover, LIOC had revitalised interest mainly due to investors hunting down shares at bargain prices that mainly backed the turnover to record lowest in almost a month.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Lanka IOC, Melstacorp and Expolanka Holdings whilst retail interest was noted in SMB Leasing voting and non-voting, LOLC Finance and Browns Investments.

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Browns Investments and Melstacorp) whilst the sector index edged up by 0.06%. The share price of Browns Investments recorded a loss of 10 cents to Rs. 4.80. The share price of Melstacorp closed flat at Rs. 53.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 0.24%. The share price of John Keells Holdings increased by 25 cents to Rs. 136.

Lanka IOC and LOLC Finance were also included among the top turnover contributors. The share price of Lanka IOC gained Rs. 3.25 to Rs. 128.75. The share price of LOLC Finance closed flat at Rs. 4.70.

Separately Dilmah Ceylon Tea Company and United Motors Lanka, Printcare, Vidullanka, Asia Siyaka Commodities announced their dividends of Rs. 25, Rs. 1.25, Rs. 3.50, 11 cents and 35 cents per share respectively.