No local cheer for Budget at CSE, foreigners bullish

The Colombo stock market yesterday closed on a negative note despite the Government presenting a pro-reform and relief Budget on Monday.

Both indices declined by nearly 1% whilst turnover was Rs. 1.57 billion involving 62 million shares.

The lacklustre investor sentiment was despite several brokers insisting the 2023 Budget has no major impact on some of large-cap and dollar earnings companies.

However foreigners remained bullish accounting for net buying of Rs. 153.6 million including Rs. 87.6 million in Dialog.

Asia Securities said the indices closed down weighed by price losses in RICH (-12.4%), EXPO (-3.9%), LIOC (-4.6%), LOFC (-2.9%), HAYL (-3.6%), and AGST (-3.4%). 

Nevertheless, SLTL witnessed a strong session ending with a sharp gain of 12.8% as investors took positions in the stock bolstered by the Government’s SoE reforms agenda. Turnover picked up with KDL generating the highest turnover for the day (Rs. 257 million) as a result of block trades executed during the session. RICH ended as the biggest laggard on the ASPI (-24 points), followed by VONE (-21 points), EXPO (-12 points), and HAYL (-11 points). 

Earlier, the ASPI saw a gap-up opening to the session and touched an intra-day high of 8,427 (+64 points) in the first hour of trading. Subsequently, the index reversed course and slipped into negative territory to close at 8,292 (-72 points). The breadth of the market remained negative with 63 price gainers and 116 decliners.

First Capital said the Bourse lapsed to red for the second straight day after investor sentiment unmoved after the Budget 2023 primarily focused on fiscal consolidations and meeting IMF preconditions.

The Index witnessed a steady uptick during the initial hour of trading while some interest was witnessed on SLTL following the budget proposal to restructure key SOE’s including SLTL. Eventually buying interest toned down among investors especially on retail favourites LIOC and EXPO resulting in the ASPI to tumble before closing for the day at 8,292 losing 72 points.

Market turnover improved led by a joint contribution of 37% from the Capital Goods sector (19%) and Telecommunication Services sector (18%).

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Richard Pieris and Company, Vallibel One and Expolanka Holdings.

It said high net worth and institutional investor participation was noted in Kelsey Developments, Dialog Axiata and Hemas Holdings. Mixed interest was observed in Sunshine Holdings and Sri Lanka Telecom whilst retail interest was noted in LOLC Finance, First Capital Holdings and Prime Lands Residencies.

The Capital Goods sector was the top contributor to the market turnover (due to Hemas Holdings) whilst the sector index lost 0.71%. The share price of Hemas Holdings recorded a gain of 50 cents to close at Rs. 56.

The Telecommunication Services sector was the second highest contributor to the market turnover (due to Sri Lanka Telecom and Dialog Axiata) whilst the sector index increased by 5.51%. The share price of Sri Lanka Telecom gained Rs. 8.20 (12.83%) to close at Rs. 72.10. The share price of Dialog Axiata appreciated by 10 cents to close at Rs. 8.50.

Kelsey Developments and Expolanka Holdings were also included among the top turnover contributors. The share price of Kelsey Developments increased by Rs. 1.20 (5.13%) to close at Rs. 24.60. The share price of Expolanka Holdings moved down by Rs. 5.75 (3.89%) to close at Rs. 142.25.