CSE suffers third consecutive week of losses

The Colombo bourse yesterday marked its third consecutive week of losses and highest in recent times as investor sentiment tumbled on macro issues.

The benchmark All Share Price Index (ASPI) closed the week 8.9% down and the active S&P SL20 ended with a sharper fall of 12.4%. Daily turnover averaged Rs. 2.9 billion.

Yesterday both indices suffered decline of over 1% whilst turnover dropped to Rs. 2 billion involving 69.7  million shares. However, the market saw Rs. 174 million in net foreign inflow.

Asia Securities said the indices remained in red territory as heavyweights extended their downward trend due to continued retail and HNI selling. 

The ASPI commenced trading with a gap-down of 194 points and slipped below the 9,000 mark to reach an intra-day low of 8,998 at market open. The index saw a subsequent recovery to 9,138, however reversed course thereupon and turned range bound between 9,040-9,060 for the remainder of the session. 

Turnover was led by LIOC (Rs. 587 million), EXPO (Rs. 274 million), and BIL (Rs. 102 million). Heavyweights LIOC (-1.0%), EXPO (-2.5%), BIL (-4.5%), LOFC (-2.6%), RICH (-1.9%), and LOLC (-4.3%) ended lower. In addition, front-line stocks ACL (-3.6%), RCL (-2.5%), DIPD (-3.3%) also closed in red. On the flipside, CICX (+1.5%), CICN (+1.3%), CFVF (+1.5%), LHCL (+2.9%), RAL (+1.4%), and AHUN (+2.7%) ended in green in an otherwise negative session. Overall, 53 stocks closed higher while 146 scaled price losses for the day.

Asia also said foreigners recorded a net inflow of Rs. 174.4 million while their participation increased to 4.8% of turnover (previous day 1.8%). Net foreign buying topped in EXPO at Rs. 50 million and selling topped in RCL at Rs. 7.

First Capital said the bourse regressed further in red with weekly intraday loss mounting to over 800 points as investors continued to book profits. Index took a deep plunge as the market opened and fell to an intraday low of 8,978 breaking the 9,000 psychological level.

Subsequently, index displayed a slight recovery but declined through mid-session as profit taking intensified in retail favourite LOLC and EXPO while towards the latter part of the session fresh buying was witnessed on LIOC before closing for the day at 9,050 losing 133 points. 

NDB Securities said high net worth and institutional investor participation was noted in CIC Holdings voting and nonvoting, John Keells Holdings and LOLC Holdings. Mixed interest was observed in Lanka IOC, Expolanka Holdings and ACL Cables whilst retail interest was noted in Browns Investments, SMB Leasing and Ambeon Capital. 

Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index lost 1%. The share price of Lanka IOC decreased by Rs. 2.25 (0.98%) to close at Rs. 227.25.

The Capital Goods sector was the second highest contributor to the market turnover (due to ACL Cables) whilst the sector index decreased by 1.12%. The share price of ACL Cables recorded a loss of Rs. 3.65 (3.64%) to close at Rs. 96.60.

Expolanka Holdings, Browns Investments and CIC Holdings nonvoting were also included among the top turnover contributors. The share price of Expolanka Holdings lost Rs. 4.25 (2.51%) to close at Rs. 164.75. The share price of Browns Investments moved down by 30 cents (4.55%) to close at Rs. 6.30. The share price of CIC Holdings nonvoting appreciated by one rupee (1.49%) to close at Rs. 67.90.