Turnover high but CSE dips due to profit taking

Despite the high turnover the Colombo stock market failed to sustain its new found momentum with both indices dipping by 0.5% due to profit taking. 

The benchmark ASPI declined by over 40 points and the active S&P SL20 dipping by 14 points. Turnover was Rs. 3.5 billion involving 268 million shares.  

Asia Securities said following four sessions of sharp gains, the indices edged down due to profit-taking in heavyweight stocks across sectors. However, activity picked up to stronger levels with turnover surpassing Rs. 3 billion for the first time in nine weeks, largely boosted by EXPO (Rs. 1,101 million) which generated 31% of total turnover, followed by BIL (Rs. 585 million) and LOFC (Rs. 527 million). 

The ASPI initially crossed the 8,600 level with a gap-up of 176 points and reached an intra-day high of 8,743 (+285 points) within the first few minutes of the session. However, the index moved downwards thereupon as active counters witnessed stabilisation on retail and HNI profit-booking following the four-day rally. After touching an intra-day low of 8,353 (-105 points), the ASPI saw a bout of recovery at the back-end of the session and eventually closed at 8,417 (-40 points). 

Asia said among actively traded counters, EXPO (-0.1%), LOFC (-1.0%), AAIC (-9.9%), RCL (-4.7%), and HAYL (-2.3%) ended lower while BIL (+5.1%), LOLC (+0.4%), ACL (+1.4%), and KVAL (+1.4%) closed in green. However, the breadth of the market turned negative with 84 price gainers and 115 decliners.

Asia also said foreigners recorded a net inflow of Rs. 8.5 million while their participation declined to 1.6% of turnover (previous day 3.7%). Net foreign buying topped in MELS at Rs. 17.8 million and selling topped in RCL at Rs. 9.6 million.

First Capital said the Bourse slid into red territory on profit taking after recording four consecutive days of gains. Turnover for the day stood at a near two-month high led by a joint contribution of 53% from the Transportation sector and Food, Beverage and Tobacco sector.

“The Index shot up with a sharp gain as it hit an intraday high of 8,749 shortly into the opening, but soon plunged and moved on a downward trajectory for the rest of the session as investors sought to take profits following large gains of previous sessions coupled with ambiguous sentiment. However, the index displayed a slight recovery towards the end of the session but failed to recover the losses and closed for the day at 8,417 losing 40 points,” First Capital added.

NDB Securities said high net worth and institutional investor participation remained subdued for the day whilst mixed interest was observed in Expolanka Holdings, Softlogic Life Insurance and Softlogic Capital. Retail interest was noted in Browns Investments, SMB Leasing voting and nonvoting and LOLC Finance. 

It said the Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index edged down by 0.11%. The share price of Expolanka Holdings edged down by Rs. 0.25 (0.11%) to close at Rs. 219.50. Food, Beverage and Tobacco sector was the second-highest contributor to the market turnover (due to Browns Investments).

The share price of Browns Investments gained 40 cents (5.06%) to close at Rs. 8.30.

LOLC Finance, Softlogic Life Insurance and Softlogic Capital were also included among the top turnover contributors. The share price of LOLC Finance moved down by 10 cents (1.01%) to close at Rs. 9.80. The share price of Softlogic Life Insurance recorded a loss of Rs. 7.20 (9.93%) to close at Rs. 65.30. The share price of Softlogic Capital declined by 10 cents (1.22%) to close at Rs. 8.10.