Lacklustre start at CSE in new week

• Turnover at Rs. 1.9 b lowest in 9 weeks; deals on JKH, Expolanka account for 51% 

The Colombo stock market began a fresh week on a lacklustre note, with a choppy day for the two indices and moderate turnover.

The All Share Price Index (ASPI) was down 38 points or 0.5% and S&P SL20 was down two points. Turnover was below average at Rs. 1.9 billion, with only 58 million shares traded.

Ceylon Tobacco, LOLC, Vallibel One and Browns Investments contributed most the ASPI’s dip. However, Carson Cumberbatch, John Keells Holdings (JKH), Singer Sri Lanka, Expolanka and Hemas gained.

JKH topped in terms of turnover, amounting to Rs. 652.6 million, whilst Expolanka saw Rs. 320.5 million worth of trading. The duo accounted for 51% of the day’s turnover.

First Capital said Bourse started the week reverting the direction back to negative, recording a turnover below 

Rs. 2 billion after nine weeks. 

“Index spiked within the first few minutes of trading as it reached its intraday high of 7,549. Thereafter, market witnessed a bumpy downtrend for the rest of the session and closed at 7,438 losing 38 points. The Capital Goods sector dominated the turnover for the session with a contribution of 44%,” First Capital added.

NDB Securities said the ASPI closed in red because of price losses in counters such as Ceylon Tobacco Company, LOLC Holdings and Vallibel One.

It said high net worth and institutional investor participation was noted in JKH. Mixed interest was observed in Chevron Lubricants, Hayleys and Sampath Bank, whilst retail interest was noted in Browns Investments, Dipped Products and Expolanka Holdings. 

The Capital Goods sector was the top contributor to the market turnover (due to JKH), whilst the sector index lost 0.55%. The share price of JKH increased by Rs. 1.25 (0.82%) to close at Rs. 153.50.

The Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings), whilst the sector index increased by 1.29%. The share price of Expolanka Holdings gained Rs. 0.60 (1.29%) to close at Rs. 47.10.

Browns Investments, Dipped Products and National Development Bank were also included amongst the top turnover contributors. The share price of Browns Investments moved down by Rs. 0.10 (1.72%) to close at Rs. 5.70. Furthermore, the share price of Dipped Products recorded a loss of Rs. 1.30 (2.58%) to close at Rs. 49.00, whilst the share price of National Development Bank appreciated by Rs. 0.10 (0.12%) to close at Rs. 83.00.

Net foreign selling was Rs. 53.5 million lower as against Rs. 753.3 million on Thursday. The year-to-date net foreign outflow is Rs. 13.5 billion.

Estimated net foreign buying topped in BIL at Rs. 44.1 million and net foreign selling topped in CTC at Rs. 28.4 million.

Capital Trust said, with the corporate results season having now come to an end and in the absence of any significant market catalyst, it expects the market to trade range-bound in the immediate term. “Nonetheless, given our sanguine long term outlook for the bourse, supported by our expectation of a low interest rate environment, we advise investors to gradually start accumulating a well-diversified portfolio of stocks which are cash generative, have strong earnings and revenue growth attributes, and have the ability to outperform over a complete market cycle,” Capital Trust added.