Negative run continues at CSE amidst lacklustre investor activity

The Colombo stock market yesterday continued its negative run amidst low investor participation.

Both indices were down by 0.4% and turnover was a low Rs. 919.7 million involving 38 million shares.

Asia Securities said the market witnessed a subdued session with profit-booking observed in GLAS (-2.5%), DIST (-1.1%), MGT (-1.8%), and CFIN (-1.6%). Nevertheless, CALT (+1.8%), FCT (+2.3%), CICN (+1.4%), and hotel stocks KHL (+2.5%), AHPL (+1.1%), and AHUN (+4.1%) saw increased activity in the trading session. The breadth of the market was weak with 62 price gainers and 112 decliners.

Turnover dropped below Rs. 1 billion as investors largely maintained a “wait-and-see” approach during trading.

Foreigners recorded a net inflow of Rs. 44.6 million. Net foreign buying topped in PINS.N at Rs. 13.7 million and selling topped in AHUN.N at Rs. 6.1 million.

First Capital said the bourse displayed a weak sentiment during the day as it concluded flat, recording a marginal decline closing at 11,348 and losing 38 points as uncertainty prevailed as a result of the IMF review meeting which is to be held from 14 September 2023.

On the bright side, Hotel sector counters continued to remain bullish as the investors continued to showcase improved interest mainly on AHUN and KHL during the day, which subsequently backed the index on a positive note.

The Food, Beverage and Tobacco sector also made a favourable contribution towards the index as LION led the positive contributors list.

NDB Securities said high net worth and institutional investor participation was noted in Hayleys. Mixed interest was observed in Capital Alliance, John Keells Hotels and CIC Holdings whilst retail interest was noted in SMB Leasing nonvoting, Tess Agro and Browns Investments.

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys) whilst the sector index lost 0.62%. The share price of Hayleys lost 60 cents to Rs. 93.80.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Capital Alliance) whilst the sector index decreased by 0.22%. The share price of Capital Alliance increased by Rs. 1.40 to Rs. 80.30.

John Keells Hotels, CIC Holdings and Asian Hotels & Properties were also included among the top turnover contributors. The share price of John Keells Hotels moved up by 60 cents to Rs. 24.40. The share price of CIC Holdings recorded a gain of one rupee to Rs. 75. The share price of Asian Hotels & Properties appreciated by 70 cents to Rs. 62.70.