Bearish run persists at CSE, late rally stems sharper fall of indices

Wednesday, 17 March 2021 00:16 -     - {{hitsCtrl.values.hits}}

Bearish sentiment persisted at the Colombo stock market with indices dipping sharply early on, before a late rally before close likely lifted the spirits of diehard investors. 

The All Share Price Index closed down over 40 points or 0.5% and the S&PSL20 dipped by 17 points or 0.6%. Both dipped sharply by mid-session before fresh buying stemmed a steeper fall. Turnover was Rs. 1.22 billion, higher than Monday’s Rs. 812 million.

First Capital said the Bourse continued its fall on the negative territory for the second consecutive session, continuing the Tuesday trend for the seventh consecutive week. 

“Index experienced a gradual downtrend since the beginning of the session as it hit its intraday low of 7,050 during mid-day. Later, the market witnessed a gradual recovery and closed at 7,120 losing 41 points,” it added. 

The Capital Goods sector led the turnover for the session, closely followed by the Diversified Financials sector, making a joint contribution of 35%. 

Asia Securities said that, following an initial decline, the ASPI index reached its lowest point of 7,052.55 (down 108 points) before picking up towards the latter part of the session.

NDB Equities said indices closed in red as a result of price losses in counters such as Hayleys, Expolanka Holdings and LOLC Holdings.

It said high net worth and institutional investor participation remained subdued for the day. Mixed interest was observed in Sampath Bank, Haycarb and Hayleys, whilst retail interest was noted in Browns Investments, Expolanka Holdings and Dipped Products. 

The Capital Goods sector was the top contributor to market turnover (due to Vallibel One), whilst the sector index lost 1.11%. The share price of Vallibel One declined by Rs. 0.30 (0.60%) to close at Rs. 49.70.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Holdings), whilst the sector index decreased by 0.60%. The share price of LOLC Holdings decreased by Rs. 2.25 (0.74%) to close at Rs. 302.50.

Expolanka Holdings, Browns Investments and Dipped Products were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 0.60 (1.29%) to close at Rs. 46. The share price of Browns Investments closed flat at Rs. 5.20. The share price of Dipped Products recorded a loss of Rs. 0.40 (0.82%) to close at Rs. 48.30.

Net foreign outflow was Rs. 43 million as against Rs. 66.5 million on Monday. Estimated net foreign buying topped in VONE at Rs. 13.3 million and net foreign selling topped in OSEA at Rs. 40 million. 

Separately John Keells announced an interim dividend of Rs. 1 per share.