CSE remains bearish influenced by locals

Wednesday, 11 January 2023 00:00 - - {{hitsCtrl.values.hits}}

The Colombo stock market remained bearish yesterday whilst turnover dipped though foreigners continued to be net buyers.

The active S&P SL20 dipped by 0.6% and the benchmark ASPI by 0.15%. Turnover was Rs. 1.83 billion (down from Rs. 2.4 billion the previous day) involving 95.3 million shares.

Foreigners recorded a net inflow of Rs. 16.1 million increasing the year-to-date figure to Rs. 92 million. Net foreign buying topped in AGST at Rs. 32 million and selling topped in LIOC at Rs. 15.2 million.

Asia Securities said indices closed in red for the fourth consecutive session on Tuesday as investors opted to cash in profits in SCAP and AAIC following continuous price increases.

Nevertheless, ASCO (+28.5%), BOGA (+16.9%), and PARQ (+15.3%) closed sharply higher amid a pick-up in market activity. The ASPI initially touched an intra-day high of 8,445 (+64 points), however reversed course as the session progressed to close with a loss of 13 points (-0.2%). Retail active stocks SCAP (-5.4%), AAIC (-5.2%), LOFC (-3.9%), and RCL (-1.8%) closed with notable price losses during the session.

The breadth of the market closed negative with 75 price gainers and 92 decliners.

SCAP (Rs. 604 million) topped the turnover list, followed by AAIC (Rs. 236 million), and LIOC (Rs. 129 million).

First Capital said the broad market skid down marginally for the fourth straight day as profit taking was witnessed on Softlogic companies (mainly AAIC and SCAP) and index heavyweights.

On a positive note, tourism sector counters started to gain during the day on the back of over 20,000 arrivals reported in the first seven days of the month. Although the index opened on an upward trajectory reaching an intraday high of 8,448, profit taking was visible during mid-day to close the day at a 1 1/2 -month low of 8,368, losing 13 points. Investors actively collected Treasury counters on the view of rates to ease in the upcoming Bill and Bond auctions and the Monetary policy review meeting.

NDB Securities the ASPI closed in red as a result of price losses in counters such as Melstacorp, Hayleys and Vallibel One.

It said high net worth and institutional investor participation was noted in Agstar. Mixed interest was observed in Softlogic Capital, Softlogic Life Insurance and Lanka IOC whilst retail interest was noted in Browns Investments, LOLC Finance and SMB Leasing nonvoting.

The Insurance sector was the top contributor to the market turnover (due to Softlogic Life Insurance) whilst the sector index lost 1.12%. The share price of Softlogic Life Insurance lost Rs. 5.75 (5.16%) to close at Rs. 105.75.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Softlogic Capital and First Capital Holdings) whilst the sector index decreased by 0.45%. The share price of Softlogic Capital decreased by 90 cents (5.42%) to close at Rs. 15.70. The share price of First Capital Holdings recorded a gain of Rs. 2 (6.17%) to close at Rs. 34.40.

Lanka IOC and Browns Investments were also included amongst the top turnover contributors. The share price of Lanka IOC moved down by 50 cents (0.26%) to close at Rs. 191.50. The share price of Browns Investments closed flat at Rs. 6.60.