Erratic sentiments force CSE into red despite improved turnover

The Colombo stock market behaved erratically yesterday before closing in the red despite improved turnover.

The All Share Price Index closed down by nearly nine points but still remains 40% up year-to-date (YTD) and the S&P SL20 ended almost unchanged. With over 294 million shares traded, turnover was Rs. 4.7 billion up from Rs. 3.6 billion on Monday.

Asia Securities said the indices edged lower due to price declines recorded in index-heavy counters, mainly led by EXPO, as investors continued booking profits in the stock for the third session in a row following the sharp gains extended over the last week.

“Earlier, the indices commenced the session on a positive note with the ASPI trading above the 9,600-mark for the first time ever, while the more liquid S&P SL20 index scaled a fresh all-time high during trading at 3,567-level. However, the indices pared their gains as investors resorted to profit-taking in mid-afternoon trade,” Asia added.

It said having reached an intra-day low of 9,503 (-40 points), the ASPI witnessed a bout of recovery during closing hours and trimmed most of its losses to end marginally lower.

Turnover improved on the back of retail and HNI activity in EXPO while tile sector companies such as RCL and TILE witnessed a notable foreign buying interest during the session. Market breadth turned negative as price decliners outnumbered gainers marginally by 98 to 88.

Asia said foreigners recorded a net outflow of Rs. 47.4 million while their participation increased to 3.2% of turnover (previous day 1%). Estimated net foreign buying topped in RCL at Rs. 36 million and net foreign selling topped in EXPO at Rs. 107 million.

First Capital said the bourse finished up in the red territory amidst a perceivable choppy trade. 

“Index opened on an upbeat trajectory and remained in an upward trajectory, reaching an intraday high of 9,606 during early hours. Subsequently, the market off-tracked its gaining momentum with a sizeable volatility as investors set on a selling spree reaching an intraday low of 9,496, but displayed a slight recovery towards the latter part of the session yet failing to reach a positive note and closed for the day at 9,534,” First Capital added.

It said turnover was led by a joint contribution of 45% from the Transportation and Capital Goods sectors.

NDB Securities said the ASPI edged down as a result of price losses in counters such as Expolanka Holdings, LOLC Development Finance and LOLC Holdings.

It said high net worth and institutional investor participation was noted in Vidullanka and National Development Bank. Mixed interest was observed in Expolanka Holdings, Dipped Products and Sierra Cables while retail interest was noted in Browns Investments, Waskaduwa Beach Resort and SMB Leasing non-voting.

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), while the sector index lost 3.07%. The share price of Expolanka Holdings decreased by Rs. 60 (3.07%) to close at Rs. 189.25.

The Capital Goods sector was the second highest contributor to the market turnover (due to Sierra Cables), while the sector index edged down by 0.13%. The share price of Sierra Cables appreciated by 40 cents (4.35%) to close at Rs. 9.60.

Browns Investments, Waskaduwa Beach Resort and Dipped Products were also included among the top turnover contributors. The share price of Browns Investments lost 10 cents (0.93%) to close at Rs. 10.60. The share price of Waskaduwa Beach Resort moved down by 20 cents (4.44%) to close at Rs. 4.30. The share price of Dipped Products recorded a loss of Rs. 1.30 (2.34%) to close at Rs. 54.20.