Dismal run continues at CSE

The Colombo stock market’s dismal run persisted yesterday ending the week and the month with losses.

In May the benchmark ASPI lost 2.1% and the active S&P SL20 was down 3.3%. Yesterday induces were down by 0.5%

Asia Securities said the market ended the week on a low note as the indices moved downwards throughout the session due to price losses in BIL (-1.6%), NTBN (-1.5%), LOLC (-1.4%), LOFC (-1.5%), and HELA (-3.0%).

 However, COCR (+3.4%) closed in green in an otherwise negative session driven by the company’s stronger-than-expected 4Q FY24 earnings. 

RICH (-8 points), COMBN (-8 points), and LOLC (-5 points). Overall, 65 stocks ended in green while 114 settled with price losses.

Turnover remained at Rs. 1.2 billion led by JKH (Rs. 107 million), BIL (Rs. 93 million), and MELS (Rs. 90 million).

Foreigners recorded a net inflow of Rs. 121.7. Net foreign buying topped in MELS at Rs. 74.1 million and selling topped in COMB.N at Rs. 9.9 million.

First Capital said the broader market endured a prolonged downtrend during the trading day, resulting in the index closing at 12,106, down by 64 points (-0.5%) with investor participation remaining low. In the midst of looming uncertainties surrounding external debt restructuring (EDR) and political environment, selling sentiment heightened among investors.

Accordingly, selling pressure was exerted on the index due to price declines in conglomerates like RICH, LOLC, MELS and BIL, resulting in a negative impact on the overall index performance. Nevertheless, the Banking sector made a positive contribution to the index, apart from COMB, which notably weighed the index down.

The Food, Beverage and Tobacco sector led turnover at 25%, followed by the Capital Goods and Banking sectors jointly contributing 38% to the overall turnover.

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp, Nations Trust Bank and National Development Bank. Mixed interest was observed in John Keells Holdings, Browns Investments and LOLC Holdings whilst retail interest was noted in LOLC Finance, Hela Apparel Holdings and Amana Bank. Furthermore, foreigners closed as net buyers.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments and Melstacorp) whilst the sector index lost 0.36%. The share price of Browns Investments lost 10 cents to Rs. 6.10. The share price of Melstacorp moved down by 80 cents to Rs. 88.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.52%. The share price of John Keells Holdings decreased by 25 cents to Rs. 206.75.

Nations Trust Bank and LOLC Holdings were also included amongst the top turnover contributors. The share price of Nations Trust Bank recorded a loss of Rs. 1.25 to Rs. 120.50. The share price of LOLC Holdings declined by Rs. 6.50 to Rs. 458.00.