Investor sentiment bearish though turnover improves at CSE

Investor sentiment continued to be bearish at the Colombo stock market though it saw improved turnover yesterday. Acuity Stockbrokers said the Bourse ended on a negative note as the ASPI decreased by 0.12% or 5.90 points to close at 5,088.10 points, while the S&P SL20 Index also decreased by 0.45% or 9.69 points to close at 2,153.40.

Turnover increased by 28.5% relative to Wednesday to Rs. 1.07 billion while the crossings for the day amounted to 27.3% of the day’s total turnover. 

Foreign investors recorded a net outflow of Rs. 0.06 billion over the day compared to a net outflow of Rs. 0.20 billion on Wednesday.

First Capital said decline in the earnings of big cap John Keells Holdings (JKH) fuelled the downfall of the market for the third consecutive session. 

Banking counters led the Rs. 1 billion plus turnover on the back of Commercial Bank while parcel trades in Commercial Bank and Nations Trust Bank boosted the turnover contributing 27%. 

“Index experienced a sideways movement till mid-day, thereafter recorded a downtrend due to the selling pressure in JKH and selective Banking counters hitting its intraday low of 5,077. Within the last few minutes of trading market spiked and closed at 5,088 losing 6 points,” First Capital said. 

While the foreign investors played the waiting game with a moderate participation, the edge in the selling side resulted in a net outflow, it added.

NDB Securities said the ASPI edged down as a result of price losses in counters such as John Keells Holdings, Dialog Axiata and Cargills.

High net worth and institutional investor participation was noted in Commercial Bank and Nations Trust Bank. Mixed interest was observed in John Keells Holdings, LOLC Holdings and Dialog Axiata whilst retail interest was noted in First Capital Holdings, CIC Holdings and East West Properties. 

The banking sector was the top contributor to the market turnover (due to Commercial Bank, Nations Trust Bank and Hatton National Bank) whilst the sector index lost 0.54%.

The share price of Commercial Bank decreased by Rs. 1.10 (1.50%) to close at Rs. 72.40. The share price of Nations Trust Bank closed flat at Rs. 63. The share price of Hatton National Bank edged up Rs. 0.10 (0.09%) to close at Rs. 111.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.22%. The share price of John Keells Holdings lost Rs. 1.40 (1.26%) to close at Rs. 110.

LOLC Holdings was also included amongst the top turnover contributors. The share price of LOLC Holdings moved up by Rs. 3.50 (2.77%) to close at Rs. 129.70.