CSE slips as investors book profit from recent gains

The Colombo stock market ended down as investors booked profit from recent gains but turnover improved in comparison to Monday. 

Acuity Stockbrokers said the bourse ended on a negative note as the ASPI decreased by 0.42% or 22.58 points to close at 5,363.21 points, while the S&P SL20 Index also decreased by 0.81% or 19.31 points to close at 2,379.67.

Turnover increased by 28.6% relative to Monday to Rs. 2.02 billion while the crossings for the day amounted to 37.2% of the total day’s turnover. 

Foreign Investors meanwhile, recorded a net outflow of Rs. 0.67 billion over the day compared to a net outflow of Rs. 0.16 billion on Monday.

First Capital said investors lost grip on the back of profit-taking disrupting the winning streak, reverting the bourse to the negative territory. 

“Index plunged within the first 30 minutes of trading due to the selling pressure in selective Diversified financials counters, thereafter recorded a short-lived bounce back till mid-day. Later market experienced a stagnant movement for the rest of the day and closed at 5,363 with a dip of 23 points,” First Capital said. 

It said turnover for the session continued to be led by the Banking counters amounting to 35% with COMB being the primary contributor. Foreign investors continued to be net-sellers while taking a cautious attitude, recording low participation.       

NDB Securities said the ASPI closed in red as a result of price losses in counters such as John Keells Holdings, LOLC Holdings and Browns Investments.

High net worth and institutional investor participation was noted in Melstacorp, Commercial Bank and John Keells Holdings. Mixed interest was observed in LOLC Holdings and DFCC Bank, whilst retail interest was noted in Lanka Milk Foods, Browns Investments and Hayleys Fabric. 

Furthermore, foreigners remained active closing as net sellers mainly due to foreign selling in John Keells Holdings and Melstacorp.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank and DFCC Bank) whilst the sector index lost 1.09%. The share price of Commercial Bank decreased by Rs. 1.40 (1.67%) to close at Rs. 82.20 while the share price of DFCC Bank declined by Rs. 1.50 (2.20%) to close at Rs. 66.80.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.50%. The share price of John Keells Holdings lost Rs. 1.50 (1.12%) closing at Rs. 133.00 whilst foreign holdings decreased by 2,508,000 shares. 

Melstacorp and LOLC Holdings were also included amongst the top turnover contributors. The share price of Melstacorp moved up by Rs. 0.80 (2.87%) closing at Rs. 28.70 whilst foreign holdings decreased by 11,087,038 shares. The share price of LOLC Holdings recorded a loss of Rs. 3.70 (2.34%) to close at Rs. 154.10.

ACL Cables announced an interim dividend of Rs. 1.50 per share.