Profit taking ends CSE’s five-day winning streak

Apparent profit taking from recent steep gains saw the five-day winning streak come to an end yesterday at the Colombo stock market.

Both indices dipped by 1% whilst turnover was lower at Rs. 1.48 billion involving 70.5 million shares.

Prior to yesterday, the value of the market had gained by Rs. 163 billion in two market days on the strength of China and India’s initial announcement of support to Sri Lanka’s external debt restructuring.

Some analysts linked yesterday’s bearish mode to lack of fire power among active investors.

Asia Securities said following five sessions of upward momentum, the indices closed lower on Tuesday as investors opted to book profits in heavyweight counters at higher levels.

The ASPI crossed the 9,000 mark on the back of a 114-point gap-up and touched a high of 9,105 in early trade. 

However, the index lost ground and gradually slipped into negative territory, weighed by price declines in VONE (-4.2%), HAYL (-3.2%), CALT (-4.8%), RCL (-4.4%), COMB (-1.8%), LOFC (-2.9%) and EXPO (-2.0%). Eventually, the ASPI closed out the session at 8,902 (-89 points). On the flipside, AAIC (+3.9%) and SCAP (+5.1%) recouped some of their losses recorded over the last few sessions. 

Top turnover contributors were BIL (Rs. 125 million), AAIC (Rs. 120 million), and SCAP (Rs. 102 million). VONE (-16 points) ended as the biggest laggard on the ASPI, followed by HAYL (-14 points), EXPO (-9 points), and COMB (-8 points). Overall, 59 stocks ended positive while 127 closed with losses.

Asia also said foreigners recorded a net inflow of Rs. 5.4 million. Net foreign buying topped in SPEN at Rs. 4.5 million and selling topped in UAL at Rs. 3.3 million.

First Capital said the bourse regressed to red after five consecutive days in the green zone as the market displayed mixed sentiment with investors being sidelined awaiting for the outcome of the upcoming monetary policy meeting which is scheduled for today.

Buying momentum continued in the morning session surpassing 9,000 level but failed to hold the momentum afterwards as profit-taking was witnessed on the index heavyweights (mainly LIOC and EXPO) and Treasury counters (FCT, CFVF and CALT). 

With a gradual slowdown, the index closed the day in the red zone at 8,902, losing 89 points. SCAP and AAIC (Insurance sector) together contributed 15% to the turnover as investor interest reactivated on the Softlogic companies after consecutive selling pressure. 

NDB Securities said high net worth and institutional investor participation was noted in Sunshine Holdings, Sampath Bank, Expolanka Holdings. Mixed interest was observed in Browns Investments, Softlogic Life Insurance and Softlogic Capital whilst retail interest was noted in LOLC Finance, Prime Lands Residencies and Ex-Pack Corrugated Cartons.

The Capital Goods sector was the top contributor to the market turnover whilst the sector index lost 1.14%. The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index decreased by 0.19%.

The share price of Browns Investments decreased by 10 cents to Rs. 7. Softlogic Life Insurance, Softlogic Capital, Sampath Bank and Expolanka Holdings were also included amongst the top turnover contributors. 

The share price of Softlogic Life Insurance gained Rs. 4 (3.94%) to Rs. 105.50. The share price of Softlogic Capital moved up 70 cents (5.11%) to Rs. 14.40. The share price of Sampath Bank closed flat at Rs. 42.90. The share price of Expolanka Holdings declined by Rs. 4 to Rs. 195.75.