CSE turns bearish

The Colombo stock market turned negative amidst lacklustre investor interest. 

The active S&P SL20 declined by 0.3% or 9 points and the benchmark ASPI shed 44 points or 0.5%. Turnover was Rs. 1.2 billion involving 36.3 million shares.

Asia Securities said indices slipped back into negative territory as investors continued to weigh mixed corporate earnings while maintaining a risk-averse stance ahead of the budget reading. Heavyweights RICH (-3.0%), SAMP (-1.7%), MELS (-2.2%), and VONE (-4.4%) dragged down the ASPI during the session while price increases in LLUB (+2.8%), CICN (+1.8%), SLTL (+2.7%), AGST (+2.7%), and RHL (+3.2%) partly cushioned the downside. 

Following a gap-up of 80 points (+0.9%), the ASPI reversed course and slipped back into negative territory to close below the 8,600 mark at 8,562 (-44 points|-0.5%). 

Turnover was led by EXPO (Rs. 419 million), LIOC (Rs. 194 million), and JKH (Rs. 41 million). The breadth of the market remained weak with 70 counters ticking up and 103 recording price losses for the day.

Foreigners recorded a net inflow of Rs. 33.4 million. Net foreign buying topped in CTHR at Rs. 35.4 million while selling topped in MELS at Rs. 4 million.

First Capital said the Bourse fell back to red from previous day’s marginal gain as day selling by retailers took charge realising profits from yesterday’s gain. However, investor activity remained dried up during today’s session as retailers chose to be on the side-lines waiting for direction on taxes from the 2023 Budget scheduled to be presented on 14 November. 

However, investor sentiment improved comparatively as retailers expect interest rates to fall in line with inflation. As a result, the index started on an upbeat note but failed to sustain the trend while displaying sizable volatility and closed the day at 8,562, losing 44 points.

NDB Securities said high net worth and institutional investor participation was noted in Browns Investments and C.T. Holdings. Mixed interest was observed in Expolanka Holdings, Lanka IOC and John Keells Holdings whilst retail interest was noted in SMB Leasing, Tess Agro and LOLC General Insurance. 

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 0.45%. The share price of Expolanka Holdings increased by 75 cents to close at Rs. 167.75.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index increased by 0.22%. The share price of Lanka IOC gained one Rupee to close at Rs. 176.25.

John Keells Holdings, Browns Investments and C.T. Holdings were also included amongst the top turnover contributors. The share price of John Keells Holdings moved down by 75 cents to close at Rs. 130.25. The share price of Browns Investments closed flat at Rs. 6. The share price of C.T. Holdings closed flat at Rs. 175.