Tech-glitch mars CSE’s transition to DVP; bourse dips

A technical glitch marred the Colombo Stock Exchange's (CSE) transition to Delivery Versus Payment (DVP) settlement best practice, delaying trading and eventually impacting investor sentiment.

The CSE said the start of the pre-open session yesterday was delayed due to one broker system vendor having technical difficulties in connecting to the exchange.

There was investor and broker frustration when the market eventually began trading after a two-hour delay at 1:00 p.m.

When the session ended the All Share Price Index was down by over 58 points, or 0.7%, and the S&PSL20 was lower by over 13 points, or 0.4%. Turnover amounted to a mere Rs. 834 million involving 56 million shares due to limited trading hours.

First Capital said the bourse retreated back to the red territory in the wake of surging COVID-19 cases and the fear of a potential lockdown, recording turnover at an almost 20-week low while losing 59 points on the short trading day, closing at 7,937.

Turnover was led by the Diversified Financials sector, followed by the Transportation sector accounting for a joint contribution of 35%.

NDB Securities said the ASPI closed in red as a result of price losses in counters such as LOLC Development Finance, Nestle Lanka and John Keells Holdings.

It said high net worth and institutional investor participation was noted in Cargills. Mixed interest was observed in Expolanka Holdings, LOLC Holdings and Ambeon Capital, while retail interest was noted in Singhe Hospitals, Nawaloka Hospitals and Browns Investments.

Diversified Financials sector was the top contributor to the market turnover (due to LOLC Holdings), while the sector index lost 2.97%. The share price of LOLC Holdings lost Rs. 5.25 (1.21%) to close at Rs. 427.75.

The Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings), while the sector index decreased by 0.24%. The share price of Expolanka Holdings decreased by Rs. 0.20 (0.25%) to close at Rs. 79.10.

Ambeon Capital, Singhe Hospitals and Cargills were also included amongst the top turnover contributors. The share price of Ambeon Capital moved down by Rs. 0.20 (0.84%) to close at Rs. 23.50. The share price of Singhe Hospitals recorded a gain of Rs. 0.50 (19.23%) to close at Rs. 3.10. The share price of Cargills appreciated by Rs. 2 (0.82%) to close at Rs. 245.

Separately, Lee Hedges announced a final dividend of Rs. 1 per share.