CSE suffers first dip in four months

Monday, 3 June 2024 02:18 - - {{hitsCtrl.values.hits}}

The Colombo stock market in May suffered its first dip in four months signalling bearish investor sentiments fuelled by political uncertainty.

In May, the benchmark ASPI declined by 2.1% and the active S&P SL20 by 3.3%. It was the first monthly dip since January and buckled the gains enjoyed in April, March and February.

The dip in May reduced the CSE’s year to date gain too. ASPI’s gain was 13.6% down from 16% in April whilst S&P SL20 is down to 16.3% from 20% in April.

Investor sentiment has been under siege due to confusion and uncertainty over elections whilst it was dented last week by the Rs. 22.5 billion mega Rights Issue announced by Commercial Bank. The market has also been eagerly waiting for the Rs. 63 billion worth of funds from the Expolanka Holdings exit offer.

It appears investors failed to take strength from the recovery of the economy and corporate earnings. According to Almas Equities 92 companies out of 164 reporting had enjoyed gains in earnings. The 164 companies had combined seen 16.47% increase in earnings quarter on quarter and 32.5% year on year.

The Market P/E was 10.02 as of 31 May.