CSE remains bearish amidst low activity

Thursday, 26 May 2022 00:51 - - {{hitsCtrl.values.hits}}

The Colombo stock market remained bearish as both indices dipped amidst low activity.

The active S&P SL20 lost 1.3% and the benchmark ASPI was down by 0.3%. Turnover was Rs. 1.6 billion involving 72 million shares.

Asia Securities said following a positive start to the session, the indices slipped into negative territory yesterday mainly due to price declines in front-line stocks.

It said the ASPI edged down 23.31 points while the more liquid S&P SL20 index declined by 36 points or 1.3% during the session as a result of the price declines recorded by EXPO (-1.7%), LOFC (-4.0%), HAYL (-2.6%), JKH (-1.9%), LOLC (-0.4%), and VONE (-2.2%).

LIOC extended its upward trend for the third consecutive session, recording a sharp gain of 10%. Turnover was supported by LIOC (Rs. 467 million), EXPO (Rs. 270 million), and BIL (Rs. 203 million).

“Following a 37-point gap-down opening, the ASPI picked up momentum to reach an intra-day high of 8,445 (+52 points) in the first hour of trading. Thereupon, the index moved downwards and touched a low of 8,345 (-48 points) before settling at 8,370 (-23 points). The breadth of the market closed moderate with 87 stocks recording price gains during the session and 96 stocks closing in red,” Asia said.

It also said foreigners recorded a net outflow of Rs. 11.6 million while their participation increased to 7.3% of turnover (previous day 1.7%). Net foreign buying topped in CARG at Rs. 3.7 million and selling topped in JKH at Rs. 14.9 million.

First Capital said continuing its negative run for the second consecutive day, ASPI closed the day in red as investor confidence took a hit after the Central Bank Governor commented that Sri Lanka will have the worst economic contraction during 2022.

“Further, due to inadequate macroeconomic policy framework in the country, World Bank has also stated that they won’t provide any new loans to Sri Lanka (except for the already approved loans), which also contributed towards the dampened sentiment,” First Capital added.

It said turnover was the lowest in a week as investors remained side-lined due to the uncertainty surrounding the country’s macro picture. The Energy sector had the biggest contribution to aggregate turnover with 28% whilst the Food & Beverage sector had the next biggest contribution of 18%.