Lacklustre run at CSE continues; turnover drops to 2 week low

The Colombo stock market’s lacklustre performance continued yesterday with turnover dropping to a two week low and indices managing modest gain.

The ASPI increased by 10 points and S&PSL20 by 9 points. Turnover was Rs. 431 million involving 14.6 million shares.

Asia Securities said the market witnessed a subdued session with turnover hitting a low due to limited participation from retail and high-net-worth investors in the lead-up to the festive season. Nevertheless, the indices saw an increase, driven by DIST (+1.1%), EXPO (+2.1%), MELS (+2.0%), and COMBN (+2.0%). Starting off on a slow note, the ASPI reached a high of 10,738 (+35 points) but later dipped to 10,699 (-4 points) during the second half of the session. 

The indices faced downward pressure due to price losses in VFIN (-2.6%), SLTL (-2.0%), SCAP (-3.8%), and LIOC (-1.7%). However, a late uptick in the final trading hour led the index to 10,713 (+10 points). Key contributors to the ASPI’s performance were COMBN (+12 points), MELS (+8 points), and EXPO (+5 points) while HNBN (-5 points) ended as the biggest laggard on the index. The breadth of the market was neutral with 76 price gainers and 82 decliners.

Asia also said foreigners recorded a net outflow of Rs. 8.7 million. Net foreign buying topped in PABC at Rs. 5.6 million and selling topped in NTB at Rs. 15.8 million.

First Capital said the Bourse closed on a marginal 10 point gain, due to a very low participation among investors, as they have opted to take a ‘wait and see’ approach on the confirmation of the second tranche of the IMF EFF, of which will go to review to the executive board on the 12 December.

It said ASPI started off strong, but throughout the rest of the session fluctuated from red to green frequently before finally concluding at 10,713 with a modest 10 point gain. COMB, MELS and EXPO were the biggest contributors to the gain, whilst HNB and CTHR were the largest negative contributors. Retail participation was poor and thus resulted in the turnover being recorded at a near two-week low of Rs. 430.8 million, which is 59.6% lower than the monthly average of Rs. 1.1 billion. The Banking and Food, Beverage & Tobacco sector were the largest contributors to the market turnover with a joint contribution of 54.6%. Foreign investors turned to net sellers at the end of today’s session.

NDB Securities said high net worth and institutional investor participation was noted in Distilleries, Melstacorp and John Keells Holdings.

Mixed interest was observed in Sampath Bank, Expolanka Holdings and Commercial Bank whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting and Softlogic Capital.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank) whilst the sector index gained 0.47%. The share price of Sampath Bank increased by 20 cents to Rs. 71.20.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Distilleries and Melstacorp) whilst the sector index increased by 0.62%.

The share price of Distilleries gained 30 cents to Rs. 28.30. The share price of Melstacorp recorded a gain of Rs. 1.60 to Rs. 82.10.

Expolanka Holdings and John Keells Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved up by Rs. 2.75 to Rs. 134.75. The share price of John Keells Holdings declined by 75 cents to Rs. 191.50