CSE starts fresh week on a negative note

The Colombo stock market began a fresh week on a negative note amidst lacklustre investor interest.

Both indices declined by over 1% with turnover of Rs. 1.2 billion involving 58 million shares. 

Yesterday’s bearish start was despite the market last week closing on the up ending two weeks of losses. 

Asia Securities said the indices snapped a seven-day gaining streak as investors opted to book profits in banking sector counters which recorded sharp price increases last week. COMBN (-1.7%), COMBX (-7.2%), SAMP (-0.8%), NTBN (-3.0%), HNBN (-5.3%), DFCC (-2.0%), and NDB (-2.6%) saw price losses while EXPO (+2.9%) and UBC (+3.3%) witnessed some retail buying during the session. 

Softlogic group counters SCAP (-8.7%) and AAIC (-6.5%) ended sharply lower due to retail selling. Turnover declined with investors taking a “wait-and-see” approach due to profit-taking activities in the market. LIOC (Rs. 202 million) came in as the biggest turnover generator followed by EXPO (Rs. 180 million), and SCAP (Rs. 66 million). 

EXPO (+11 points) contributed the most to the ASPI during the session while HNB (-16 points), HAYL (-15 points), and VONE (-10 points) ended as the biggest laggards on the index. The breadth of the market was positive with 46 price gainers and 141 decliners.

Asia also said foreigners recorded a net outflow of Rs. 2.2 million. Net foreign buying topped in TKYO.X at Rs. 19.4 million and selling topped in UBC.N at Rs. 27.8 million.

First Capital said the bourse closed in red after continuous gains recorded during the previous week as uncertainty mounted on investors with the delay in IMF board level agreement while a protest that took place Sunday further triggered panic selling. 

It said the Index plunged steeply, soon into market opening as investors resorted to book profits mainly on banking counters as there is no clear direction on progressions of IMF board-level agreement. 

The index heavy-weights too slid low with panic-selling as uncertainty emerged and dragged the index sharply and recorded at 9,199 losing 117 points. However, EXPO contributed positively to the index with the acquisition of Trans American Customhouse brokers LLC while LIOC too witnessed positive activity following the news on 25 new sheds being opened. 

NDB Securities said high net worth and institutional investor participation was noted in Royal Ceramics, Lanka IOC and Union Bank. Mixed interest was observed in Expolanka Holdings, John Keells Holdings and Softlogic Life Insurance whilst retail interest was noted in SMB Leasing nonvoting, Browns Investments and Softlogic Capital. 

The Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index edged up by 0.02%. The share price of Lanka IOC decreased by 25 cents to Rs. 198.25.

The Capital Goods sector was the second highest contributor to the market turnover (due to Royal Ceramics and John Keells Holdings) whilst the sector index decreased by 1.79%. The share price of Royal Ceramics recorded a loss of 50 cents to Rs. 30. The share price of John Keells Holdings declined by Rs. 2.75 to Rs. 135.75.

Expolanka Holdings and Softlogic Capital were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 5 to Rs. 180. The share price of Softlogic Capital moved down by one Rupee to Rs. 10.50.

Separately Commercial Development Company PLC announced a final cash dividend of Rs. 4 per share.