Negative and subdued start in new week at CSE

The Colombo stock market began a fresh week on a negative note with both indices down amidst moderate turnover.

The active S&P SL20 declined by 1% and the benchmark ASPI by 0.7%. Turnover was Rs. 580 million involving 30 million shares. Market also saw net foreign selling.

The subdued start was after the CSE saw resurgent activity last week with the ASPI up 430.17 points (4.88%) and S&P SL20 by 144.14 points (5.78%). Turnover averaged Rs. 2 billion improving from Rs. 960 million in the previous week.

Asia Securities said the market commenced the week on a subdued note with turnover dipping to lacklustre levels after a series of strong sessions.

Notable price losses were recorded by LIOC (-3.1%), LOFC (-1.8%), SAMP (-2.7%), BIL (-1.8%), COMBN (-1.5%), EXPO (-2.4%), and HHL (-1.6%). However, CICN (+1.6%), GLAS (+3.6%), CALT (+2.9%), DIST (+2.3%), and FCT (+3.4%) recorded price gains in an otherwise negative session. The breadth of the market was negative with 52 price gainers and 123 decliners.

Turnover was led by HAYL (Rs. 61 million), CWM (Rs. 32 million), and CICN (Rs. 30million).

Asia also said foreigners recorded a net outflow of Rs. 12.6 million. Net foreign buying topped in SIRA at Rs. 11.4 million and selling topped in CIC.N at Rs. 22.8 million.

First Capital said the bourse displayed a downtrend and closed lower while recording the lowest turnover in one and half weeks as retailers continued to be on the sidelines on the back of delays in finalising the DDR process.

The overall Banking sector lost momentum whilst selling pressure extended mainly on SAMP and COMB. On the other hand, slight retail interest was visible on Treasury counters as yields continued to descend.

Following the dividend announcements, revitalised buying interest was witnessed on DIST (Rs. 1.75 per share), CWM (Rs. 12 per share) and VPEL (50 cents per share) during the day.

NDB Securities said high net worth and institutional investor participation was noted in Hayleys. Mixed interest was observed in C.W. Mackie, CIC Holdings and Piramal Glass whilst retail interest was noted in LOLC Finance, Browns Investments and Vallibel Power Erathna.

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys) whilst the sector index lost 0.30%. The share price of Hayleys closed flat at Rs. 72.

The Materials sector was the second highest contributor to the market turnover (due to CIC Holdings and Piramal Glass) whilst the sector index increased by 0.53%. The share price of CIC Holdings moved up by one rupee to Rs. 62.60. The share price of Piramal Glass recorded a gain of

80 cents to Rs. 22.80.

C.W. Mackie and Lanka IOC were also included among the top turnover contributors. The share price of C.W. Mackie gained Rs. 1.70 to Rs. 94. The share price of Lanka IOC declined by Rs. 4 to Rs. 125.50.