Woes at CSE continue onto fresh week, ASPI slumps to three month low

The Colombo stock market began a new week on a dismal note with both indices down amidst low turnover reinforcing lack of confidence among the investor community.

The active S&P SL20 declined by over 2% and the benchmark ASPI by 1.6%. 



Turnover was Rs. 678.5 million involving 35.6 million shares.

Asia Securities said the market commenced the week on a subdued note with the indices continuing in the red for a fifth session. The ASPI declined 187 points (-1.6%) and the S&P SL20 index dropped 72 points (-2.1%), dragged by HAYL (-1.0%), COMBN (-4.2%), BIL (-3.6%), LMF (-2.9%), RCL (-2.5%), and LLUB (-2.5%).

COMBN (-29 points), MELS (-16 points), HNBN (-12 points), and JKH (-8 points) ended as the biggest laggards on the ASPI. Overall, 29 stocks ended in green while 153 settled with losses.

Turnover was led by HAYL (Rs. 92 million) and JKH (Rs. 80 million).

Asia also said foreigners recorded a net outflow of Rs. 2.3 million. Net foreign buying topped in SUN at Rs. 8.1 million and selling topped in ACL at Rs. 6.9 million.

First Capital said the broader market witnessed another day of decline, influenced by ongoing uncertainties surrounding the external environment and the country’s political landscape, compounded by potential margin selling.

The ASPI commenced the week on a negative note and recorded the largest decline in three months, losing 187 points, and closed the day at 11,540. Banking sector counters and blue-chip stocks dragged the market down significantly. However, there was a slight improvement in sentiment among retail investors, while the participation of HNWIs remained muted. On the back of muted participation from HNWIs, turnover declined by 51.2% from the month’s average. The Capital Goods sector led the turnover with 40%, followed by the Food, Beverage and Tobacco and Banking sectors jointly contributing 28% to the overall turnover. Furthermore, foreign investors turned net sellers, with a net foreign outflow of Rs. 2.3 million after 5 consecutive sessions of net foreign inflow. However, MTD net foreign inflow is at Rs. 3.8 billion, signalling foreign investors’ confidence in companies with strong growth potential and solid fundamentals.

NDB Securities said high net worth and institutional investor participation was noted in Hayleys, ACL Cables and John Keells Holdings. Mixed interest was observed in Browns Investments, Hatton National Bank and Royal Ceramics whilst retail interest was noted in Industrial Asphalts, UB Finance Company and LOLC Finance.

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys, John Keells Holdings and ACL Cables) whilst the sector index lost 1.37%. The share price of Hayleys decreased by one Rupee to Rs. 100. The share price of John Keells Holdings lost Rs. 2.75 to Rs. 191.25. The share price of ACL Cables moved down by one Rupee to Rs. 82.10.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index decreased by 1.70%. The share price of Browns Investments recorded a loss of 20 cents to Rs. 5.40.

Hatton National Bank was also included amongst the top turnover contributors with its share price down by Rs. 3.75 to Rs. 188.25.