CSE suffers third consecutive month of decline

The Colombo stock market marked the third consecutive month of decline reinforcing its struggle amidst worsening economic and political chaos in the country.

April saw the ASPI losing 1,279.61 points or 14.37% while the S&P SL20 lost 521.92 points or 17.22%.

After a modest 6.41% gain in ASPI and 4% by S&P SL20, in January the market in February declined by 11% and by 23% in March. Year to date the ASPI is down by 37.6% and S&P SL20 by 41%.

Despite the sharp rebound on Wednesday and Thursday, the CSE was lacklustre yesterday.

The ASPI was up by only 13 points and S&P SL20 by 5.5 points. For the week the ASPI was down 510.99 points (6.28%) and S&P SL20 lost 114.66 points (4.37%).

Turnover yesterday was Rs. 2.5 billion involving 120.5 million shares. The daily average turnover in April was Rs. 1.6 billion.

Asia Securities said the indices pared their early gains as retail and HNI investors resorted to profit-booking in selected heavyweight stocks ahead of holiday weekend.

Following a sharp gap-up of 156 points, the ASPI oscillated within a range of 7,750-7,800 in early hours, however, after touching an intra-day high of 7,808 (+197 points), the index reversed course largely due to profit-taking in EXPO, BIL, and COMB and eventually ended with a marginal gain of 13 points (+0.2%).

Turnover remained at healthy levels supported by activity in EXPO (Rs. 1,150 million), BIL (Rs. 333 million) and LOLC (Rs. 224 million). The breadth of the market continued positive with 107 price gainers and 78 decliners.

Asia also said foreigners recorded a net inflow of Rs. 62.8 million while their participation declined to 2.0% of turnover (previous day 3.6%). Net foreign buying topped in SPEN at Rs. 51.7 million and selling topped in EXPO at Rs. 6.2 million.

First Capital said the Bourse extended its bull run and closed the week in the green territory while recording a modest gain. Index opened on a strong uptrend yet subsequently witnessed sizable volatility over the looming uncertainty. As selling pressure emerged, most of the early gains were wiped off as investors chose to book profits and adopt a cautious stance after the index surpassed 7,800 level. Nevertheless, bulls managed to hold on to their position, while closing the day at 7,624.

Turnover was led by the Transportation sector accounting for a sole contribution of 46%.

NDB Securities said high net worth and institutional investor participation was noted in Aitken Spence and Cargills. Mixed interest was observed in LOLC Holdings, Commercial Bank and Dialog Axiata whilst retail interest was noted in Browns Investments, LOLC Finance and Expolanka Holdings.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index lost 0.88%. The share price of Expolanka Holdings decreased by Rs. 1.50 (0.88%) to close at Rs. 169.50.

Food, Beverage, and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 0.70%. The share price of Browns Investments lost 10 cents (1.61%) to close at Rs. 6.10.

LOLC Holdings, LOLC Finance and Aitken Spence were also included amongst the top turnover contributors. The share price of LOLC Holdings moved up by Rs. 24.50 (5.93%) to close at Rs. 437.50. The share price of LOLC Finance closed flat at Rs. 6.80. The share price of Aitken Spence declined by Rs. 5.10 (6.87%) to close at Rs. 69.10.