Higher turnover helps to lower the dip at CSE

The Colombo stock market yesterday saw higher turnover along with active investor participation which helped to lower the dip in indices

Acuity Stockbrokers said the bourse ended on a negative note as the ASPI decreased by 0.04% or 2.34 points to close at 5,333.32 points, while the S&P SL20 Index also decreased by 0.49% or 11.64 points to close at 2,353.27.

Turnover increased by 16.7% relative to Wednesday to Rs. 2.2 billion while the crossings for the day amounted to 32.2% of the total day’s turnover. Foreign investors meanwhile, recorded a net outflow of Rs. 0.36 billion over the day compared to a net outflow of Rs. 0.83 billion on Wednesday.

First Capital said panicked retailers book profits amidst substantial activities by institutional investors, fuelling the downfall, preventing the bourse from 

eking a gain. 

“ASPI plunged within the first 30 minutes of trading due to the selling pressure in COMB. Subsequently market recorded an uptrend during mid-day as it reached its intraday high of 5,346 before closing at 5,333 losing merely 2 points,” First Capital added. 

It said COMB led the turnover contributing 49% sustaining the dominance of the Banking counters. Additionally, turnover was boosted by parcel trades amounting to 30% of total. Foreign investors continued to play the waiting game surpassing an YTD net outflow of Rs. 31 billion.

NDB Securities said the ASPI edged down as a result of price losses in counters such as Commercial Bank, LOLC Holdings and Dilmah Ceylon Tea Company. High net worth and institutional investor participation was noted in Commercial Bank of Ceylon, John Keells Holdings and Lanka Milk Foods. Mixed interest was observed in LOLC Holdings, Sampath Bank and Hatton National Bank, whilst retail interest was noted in Melstacorp, Tokyo Cement Company non-voting and Kelani Tyres. 

Furthermore, foreigners closed as net sellers mainly due to foreign selling in John Keells Holdings.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank, Sampath Bank and DFCC Bank) whilst the sector index lost 0.73%. The share price of Commercial Bank decreased by Rs. 1.50 (1.84%) to close at Rs. 80.10, while the share price of Sampath Bank recorded a loss of Rs. 1.10 (0.87%) to close at Rs. 124.90. Furthermore, the share price of DFCC Bank appreciated by Rs. 1.00 (1.49%) to close at Rs. 68.00.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.30%. The share price of John Keells Holdings lost Rs. 0.40 (0.30%) closing at Rs. 133.10 whilst foreign holdings decreased by 1,808,586 shares. 

LOLC Holdings was also included amongst the top turnover contributors. The share price of LOLC Holdings moved down by Rs. 1.80 (1.27%) to close at Rs. 140.20. 

Renuka Holdings announced their first and final dividend of Rs. 0.25 per share.