CSE turnover slips to near one year low ahead of Monetary Policy Review

The Colombo stock market turnover slumped to a one year low and indices dipped as investors remained inactive ahead of the Monetary Policy Review today and the holiday season.

Turnover yesterday was Rs. 570 million involving 27 million shares. ASPI declined by 64 points or 0.7% and S&P SL20 by over 6 points or 0.2%.

Asia Securities said the indices ended lower due to price declines recorded by NDB (-1.3%), SAMP (-2.9%), SLTL (-3.3%), NTBN (-1.1%), COMBN (-3.9%), HNBN (-2.7%), HASU (-5.8%), SLTL (-3.3%), and ACL (-1.6%). 

However, EXPO closed with a sharp gain of 6.7% in an otherwise subdued session. EXPO (+16 points) provided the biggest boost to the ASPI while COMBN (-19 points), SAMP (-14 points), and HNBN (-10 points) came in as the major laggards on the ASPI. The breadth of the market was negative with 66 price gainers and 115 decliners.

Retail and HNI activity was lacklustre throughout the session as investors await for today’s Monetary Policy Review meeting. As such, turnover reached an eighth-month low led by EXPO (Rs. 191 million), NDBN (Rs. 41 million), and SLTL (Rs. 26 million). 

First Capital said bourse shifted to red during today’s session as investors took the sidelines ahead of the monetary policy review meeting announcement scheduled for today. Although index slightly escalated as the market opened, subsequently it plunged with sizable volatility as profit booking intensified on banking sector counters before closing for the day at 9,237 losing 64 points. 

Turnover plummeted to a near 9-month low of Rs. 570.0 million (-70.6% cf. monthly average turnover of Rs. 1.9 billion) amidst limited retail participation owing to the holiday-shortened week. 

NDB Securities said high net worth and institutional investor participation was noted in the National Development Bank. Mixed interest was observed in Expolanka Holdings, Sri Lanka Telecom and

Sampath Bank whilst retail interest was noted in Industrial Asphalts, SMB Leasing nonvoting and Browns Investments.

Foreign participation in the market activity remained at subdued levels with foreigners closing as net buyers.

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 6.69%. The share price of Expolanka Holdings increased by Rs. 9.25 (6.70%) to Rs. 147.25.

The Banking sector was the second highest contributor to the market turnover (due to National Development Bank and Sampath Bank) whilst the sector index decreased by 2.59%.

The share price of National Development Bank lost 60 cents to Rs. 44.30. The share price of Sampath Bank recorded a loss of Rs 1.50 to Rs. 51.

Sri Lanka Telecom and Lanka IOC were also included amongst the top turnover contributors. The share price of Sri Lanka Telecom moved down by Rs. 3.10 to Rs. 90.90. The share price of Lanka IOC declined by 25 cents to Rs. 171.25.