Turnover at CSE sinks to 3-month low

The Colombo stock market yesterday saw its turnover sink to a three-month low of Rs. 818 million whilst investor sentiment was mixed leading to a week of loss.

The low turnover was with just 28 million shares changing hands. The benchmark ASPI dipped 17 points whilst the active S&P SL20 gained by 1.68 points.  For the week the ASPI lost 236.80 points (2.71%) while the S&P SL20 lost 57.01 points (2.16%). Average daily turnover was Rs 1 billion down from Rs. 1.4 billion last week.

Asia Securities said following a positive start to the session, the indices reversed gains on Friday as price losses in BIL (-3.3%), LOLC (-1.4%), HAYL (-1.8%), and ACL (-3.6%) dented market momentum while slowdown in activity continued with turnover coming in below Rs. 1 billion for the first time in three months. 

On similar lines, trading volume totalled 28 million shares, its lowest level recorded this year. The ASPI edged down 17 points to close at 8,492 while the S&P SL20 managed to close in green (+2 points) supported by EXPO (+1.7%), AAIC (+2.3%), and LLUB (+1.8%). 

The ASPI initially reached an intra-day high of 8,585 (+76 points) and hovered in the range of 8,560-8,575 in the first half of the session. Thereupon, the index lost ground and slipped below the 8,500 mark. Overall, 75 stocks closed in green while 92 ended lower. Foreigners recorded a net inflow of Rs. 2.5 million.

First Capital said ASPI closed lower for the third consecutive day, ending the week on a negative note on the back of dull investor sentiment as retailers remain sidelined awaiting direction from the upcoming Budget 2023.

Index opened on an upbeat note but regressed to red after mid-day as selling pressure took charge and closed the day lower at 8,492, losing 17 points. Turnover weakened to 14-week low as fears of domestic debt restructuring further dampened the market sentiment. Transportation and Energy sectors jointly contributed 38% to the market turnover.