Indices turn volatile at CSE amidst low turnover

The Colombo stock market yesterday saw much volatility in its two indices and recovered much of its lost ground amidst low turnover. 

The All Share Price Index closed almost flat or 1.57 points/0.02% down, whilst the S&P SL20 finished 3.52 points up or 0.12%, having dipped sharply in early trading. Turnover was Rs. 1.5 billion, involving 62 million shares.    

First Capital said the ASPI underwent a massive rollercoaster ride, questioning the confidence of the market participants. 

It said index managed to close broadly flat with only a marginal loss, snapping the green trend created during the last six trading sessions. 

“The rollercoaster session lasted for 90 minutes, as the market gradually lurched down a massive 100 points, reaching an intraday low of 7,636 and subsequently recovering, erasing all losses with renewed buying interest, moving on to reach an intraday high of 7,767. Thereafter, index moved laterally for the rest of the session, closing at 7,742, losing two points,” First Capital said. 

It said turnover was dominated by the Food, Beverage and Tobacco sector, closely followed by the Banks sector accounting for a joint contribution of 37%. 

Asia Securities said following six consecutive green sessions, the ASPI commenced trading on a negative note and reached an intra-day low of 7,638 level (-1.37%), before showcasing a strong recovery supported by price gains in counters such as NIFL, COMB and GRAN and ended the session marginally lower. 

Turnover declined however, and remained at moderate levels led by HNI and retail activity. The Food, Beverage and Tobacco, Banks, Diversified Financials and Capital Goods sectors led activity, collectively accounting for 66.4% of turnover. 

Asia said foreigners recorded a net outflow of Rs. 29.9 million, while their participation declined to 4.2% of turnover (previous day 6.4%). Estimated net foreign buying topped in TILE at Rs. 15.1 million and net foreign selling topped in DIPD at Rs. 29.7 million. 

NDB Securities said the ASPI edged down as a result of price losses in counters such as Carson Cumberbatch, Bukit Darah and Melstacorp.

It said high net worth and institutional investor participation remained subdued for the day. Mixed interest was observed in Expolanka Holdings, Commercial Bank and LOLC Holdings, whilst retail interest was noted in Browns Investments, Industrial Asphalts and Singhe Hospitals. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover, whilst the sector index lost 1.79%.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank and Hatton National Bank non-voting), whilst the sector index increased by 0.46%. The share price of Commercial Bank gained Rs. 1.70 (1.93%) to close at Rs. 89.90. The share price of Hatton National Bank non-voting closed flat at Rs. 110.

Expolanka Holdings, LOLC Holdings and Dipped Products were also included amongst the top turnover contributors. The share price of Expolanka Holdings closed flat at Rs. 50.10. The share price of LOLC Holdings moved down by Rs. 3 (0.73%) to close at Rs. 405.50. The share price of Dipped Products appreciated by Rs. 0.30 (0.58%) closing at Rs. 52.20, whilst foreign holdings decreased by 568,649 shares.