CSE suffers fourth consecutive week of decline

The Colombo stock market suffered its fourth consecutive week of decline as investor sentiment remained besieged on macro issues despite impressive corporate earnings.

The ASPI finished the week yesterday declining 325.76 points (-2.61%) while the S&P SL20 lost 78.77 points (-1.87%).  Turnover averaged a low Rs. 3.6 billion as against Rs. 4.6 billion in the previous week.

Asia Securities said yesterday the indices moved downwards throughout the session due to heavy losses recorded by index-heavy counters LOLC (-3.0%), EXPO (-3.4%), RCL (-2.9%), and LOFC (-4.7%). The ASPI closed at a one-week low slipping below the 12,200 levels while the S&P SL20 index ended below the 4,200 levels. However, turnover surpassed Rs. 5 billion boosted by activity in LOFC (Rs. 2,953mn). Meanwhile, foreigners ended as net buyers recording a net inflow of Rs. 11.2mn led by net foreign buying in PABC (Rs. 16.5mn) and CIC (Rs. 13.4mn). Overall, 36 counters ended higher while 182 counters settled with losses.

First Capital said the Bourse displayed a complete downtrend and closed lower despite recording the highest turnover for the week.

“The Index plunged lower as soon as the market opened and traded in the red zone throughout the session. Index lost nearly 325 points during the week, in which a huge loss was recorded,” First Capital said.

“Following a price drop LOLC, EXPO and JKH investors panicked and urged to infuse selling pressure which continued till the end and led the market to close at 12,134, losing 218 points,” it said adding turnover was led by a contribution of 66% from Diversified Financials sector.

NDB Securities said high net worth and institutional investor participation was noted in DFCC Bank, Hela Apparel Holdings Limited and Royal Ceramics. Mixed interest was observed in Commercial Leasing and Finance, Expolanka Holdings and Softlogic Holdings whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting and Lanka Orix Finance.

Diversified Financials sector was the top contributor to the market turnover (due to Lanka Orix Finance and Commercial Leasing and Finance) whilst the sector index lost 3.61%. The share price of Lanka Orix Finance decreased by Rs 2.10 (7.75%) to close at Rs 25. The share price of Commercial Leasing and Finance lost Rs 2.50 (5.04%) to close at Rs 47.10.

The Capital Goods sector was the second highest contributor to the market turnover whilst the sector index decreased by 2.09%.Expolanka Holdings, Browns Investments and DFCC Bank

were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved down by Rs 7.25 (2.27%) to close at Rs 312. The share price of Browns Investments recorded a loss of 30 cents (2.11%) to close at Rs 13.90. The share price of DFCC Bank declined by Rs 3.10 (5.07%) to close at Rs 58.

Separately Nestle Lanka, Hatton National Bank and Hatton National Bank non-voting announced their interim dividends and scrip dividend of Rs 20, Rs 6.50 cash and Rs.2.50 scrip, for voting and non voting whilst HNB Assurance announced a first and final dividend of Rs 3.20 per share. Nestle Lanka announced a final dividend of Rs 35 per share.