Negative start in fresh week at CSE; Hela shines on debut

The Colombo stock market began a fresh week on a negative note with both indices down 1% as investor sentiment remained bearish amidst low activity barring debutant Hela Apparel Holdings.

The All Share Price Index dipped by 131 points or 1% and the S&P SL20 was down by 1.2% or 53 points. Turnover was Rs. 6 billion with only 193 million shares traded.

Asia Securities said following a brief respite in the previous session, the indices returned to negative territory with the ASPI slipping below the 12,700-level weighed by price declines in active counter EXPO (-2.8%), LOLC (-2.5%), BIL (-3.2%) and RCL (-2.9%).

On the positive side, Hela Apparel Holdings started trading on the exchange and marked a strong debut on the back of high retail and HNI participation. The stock opened trading at Rs. 21.50, up 43% from its issue price of Rs. 15, and touched an intra-day high of Rs. 22 (+47%) before consolidating at Rs. 18.60 (+24%). 

The stock also generated the highest turnover for the day at Rs. 1.03 billion followed by CLC (Rs. 782 million) and EXPO (Rs. 688 million). The breadth of the market turned negative with 65 gainers and 141 decliners.

Asia also said foreigners recorded a net outflow of Rs. 457 million while their participation increased to 5.2% of turnover (previous day 1.9%). Net foreign buying topped in EXPO at Rs. 14.7 million and selling topped in JKH at Rs. 331.6 million.

First Capital said the bourse skid to the red zone as ambiguous investors resorted to book profits in selected counters over rising uncertainties in the economy while recording a turnover at a near two-week low.

“Shortly into the market opening, index started to decline sharply and continued to move on a downward trajectory for the rest of the session over an intensified selling spree mainly in retail favourite counters such as EXPO and LOLC which largely stirred the ASPI drop with the market closing for the day at 12,632,” First Capital said, adding turnover was led by a joint contribution of 50% from the Diversified Financials sector and Consumers Durables sector while the turnover of the latter was mainly driven by HELA which inaugurated its trading.

NDB Securities also said the ASPI closed in red as a result of price losses in counters such as Expolanka Holdings, LOLC Holdings and Browns Investments.

It said high net worth and institutional investor participation was noted in John Keells Holdings, Lanka Orix Finance and Lanka IOC. Mixed interest was observed in Expolanka Holdings, Softlogic Holdings and Sunshine Holdings whilst retail interest was noted in Hela Apparel Holdings, Commercial Leasing and Finance and Browns Investments.

Diversified Financials sector was the top contributor to the market turnover (due to Commercial Leasing and Finance and Lanka Orix Finance) whilst the sector index gained 0.23%. The share price of Commercial Leasing and Finance gained Rs. 6.60 (19.70%) to close at Rs. 40.10. The share price of Lanka Orix Finance recorded a gain of 50 cents  (1.82%) to close at Rs. 27.90.

Consumer Durables and Apparel sector was the second highest contributor to the market turnover (due to Hela Apparel Holdings) whilst the sector index decreased by 1.02%. The share price of Hela Apparel Holdings Limited increased by Rs. 3.60 (24.00%) to close at Rs. 18.60. Expolanka Holdings and John Keells Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved down by Rs. 9.50 (2.75%) to close at Rs. 335.75. The share price of John Keells Holdings declined by one Rupee (0.63%) to close at Rs. 157.