IMF deal fails to prevent CSE suffering first weekly loss in a month

The $ 2.9 billion four year Extended Fund Facility which the International Monetary Fund approved for Sri Lanka failed to prevent the Colombo stock market suffering its first weekly loss in a month.

The benchmark ASPI lost 251.07 points (2.60%) this week while the active S&P SL20 lost 114.59 points (4.03%). CSE last suffered a loss in the week ending 17 February.

Despite the weekly dip, the indices gained yesterday. Furthermore the average daily turnover this week improved to Rs. 2 billion from Rs. 1.5 billion in the previous week.

Asia Securities said the market ended the week on a positive note on Friday (24) as the indices returned to green territory following three sessions of losses. 

The ASPI initially reached an intra-day high of 9,472 (+76 points) before moving downwards to close at 9,419 (+23 points), dragged by HAYL (-5.9%), EXPO (-1.1%), and LOFC (-1.6%). Sectorally, hotel stocks saw a pick-up in buying interest during the session with CITW (+19.2%), EDEN (+5.2%), CHOT (+9.8%), KHL (+2.7%), GHLL (+2.1%), and HUNA (+7.2%) leading the upward momentum. Meanwhile, front-line stocks SAMP (+2.8%), HNBN (+0.8%), and COMB (+1.5%) saw some respite after consecutive sessions of price losses. The breadth of the market was neutral with 93 price gainers and 95 decliners.

Turnover on Friday was Rs. 1.9 billion with CTC coming in as the highest turnover generator (Rs. 643 million) due to foreign selling. Off-board transactions accounted for 36% of turnover with crossings in CTC (Rs. 556 million), and SAMPN (Rs. 130 million).

Foreigners recorded a net outflow of Rs. 597.1 million yesterday. Net foreign buying topped in HNB.N at Rs. 92.7 million and selling topped in CTC at Rs. 642.6 million.

First Capital said after continuous selling in the previous sessions, bourse closed in green gaining 23 points with revitalised interest on banking counters uplifting the index. Consumer services sector witnessed active investor participation driven by the tourism sector which experienced more than 76,000 tourist arrivals during the first three weeks of March 2023.

CTC witnessed increased foreign selling and local buying, whereas profit-taking was extended on HAYL due to the ex-dividend (XD).

NDB Securities said high net worth and institutional investor participation was noted in Ceylon Tobacco Company, Sampath Bank and Hatton National Bank. Mixed interest was observed in Sri Lanka Telecom, Hayleys and Melstacorp whilst retail interest was noted in Waskaduwa Beach Resort, Browns Investments and Eden Hotel Lanka.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Ceylon Tobacco Company) whilst the sector index gained 0.25%. The share price of Ceylon Tobacco Company edged down by 75 cents to close at Rs. 642.

The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank and Hatton National Bank) whilst the sector index increased by 1.20%.

The share price of Sampath Bank gained Rs. 1.40 to Rs. 52. The share price of Hatton National Bank moved up by one rupee to Rs. 129.75.

Sri Lanka Telecom and Hayleys were also included amongst the top turnover contributors. The share price of Sri Lanka Telecom recorded a loss of 50 cents to Rs. 111.50. The share price of Hayleys declined by Rs. 4.70 to Rs. 75.