CSE suffers first dip in 2024

The Colombo stock market yesterday suffered its first dip in the new year as investor sentiments turned lacklustre though turnover was good.

The active S&P SL20 declined by 0.4% and the benchmark ASPI by 0.1%. Turnover was Rs. 774.6 million involving 42 million shares. Market also saw net foreign outflow.

Asia Securities said the market commenced the week on a low note with the indices moving downwards weighed by DIAL (-1.1%), HAYL (-1.3%), BIL (-2.2%), and CALT (-2.1%). However, investors continued accumulating positions in EXPO (+2.1%) and AMF (+5.1%) while SINS (+3.3%), EDEN (+4.5%), KHL (+2.1%), and ALUM (+1.2%) saw renewed investor interest during the session.

EXPO (+6 points), CARG (+4 points), and HNB (+3 points) came in as the major index movers for the day while DFCC (-5 points), TJL (-3 points) and VONE (-3 points) ended as the biggest laggards.

Turnover was led by MELS Rs. 96 million, EXPO Rs. 76 million and DIAL Rs. 62 million.

Foreigners recorded a net outflow of Rs. 6.4 million. Net foreign buying topped in CTC at Rs. 12.7 million and selling topped in SINS at Rs. 19 million.

First Capital said the Bourse closed in the red zone for the first time in 2024. The broader market witnessed a session of profit taking and recorded a decline of 11 points to close the day at 10,750, making it the first drop in ASPI in one and a half weeks.

It said DFCC, TJL and VONE were the largest negative contributors to the index whilst EXPO, CARG and HNB were the biggest positive contributors. EXPO witnessed revitalised interest during today’s session as Freightos Baltic Index gained 87.8% to $ 2,519.0/40ft container during the first week of 2024, due to the Red Sea/Suez situation. An increased interest in hotel sector counters was also observed during the day following the news of 25,000 tourist arrivals in the first 4 days of 2024.

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp and Dialog Axiata. Mixed interest was observed in Expolanka Holdings, Associated Motor Finance Company and John Keells Holdings whilst retail interest was noted in Hela Apparel Holdings, Browns Investments and Singer Sri Lanka.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Melstacorp) whilst the sector index edged up by 0.03%. The share price of Melstacorp decreased by 40 cents to Rs. 92.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.48%. The share price of John Keells Holdings declined by 50 cents to Rs. 189.

Expolanka Holdings, Dialog Axiata and Associated Motor Finance Company were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 3 to Rs. 144.00. The share price of Dialog Axiata moved down by 10 cents to Rs. 8.80. The share price of Associated Motor Finance Company recorded a gain of Rs. 1.10 to Rs. 22.80.