Lacklustre performance of CSE persists

The lacklustre performance of the Colombo stock market continued yesterday with both indices down and multiple-weeks-low turnover.

The active S&P SL20 declined by 0.7% and the benchmark ASPI by 0.6%. Turnover was Rs. 632 million involving 38 million shares. 

Asia Securities said the indices closed in red for a third consecutive session mainly due to pullback in EXPO as investors booked profits during the session capitalising on the recent uptrend in the stock. EXPO ended with a loss of 4.6% and ended as the biggest laggard (-14 points) on the ASPI. Nevertheless, the stock came in as the highest turnover generator for the day (Rs. 117 million). Overall, market turnover was recorded at a two-month low due to subdued retail and HNI activity. The breadth of the market remained negative with 55 price gainers and 110 decliners.

Asia also said foreigners recorded a net outflow of Rs. 44.2 million. Net foreign buying topped in TKYO.X at Rs. 30.5 million and selling topped in HAYL at Rs. 36 million.

First Capital said the bourse closed on a negative note yet again for the third consecutive day backed by profit taking and low investor participation. EXPO was the biggest drag on the index whilst banking sector heavyweights HNB and SAMP were also amongst the top negative contributors for the day. 

“The poor sentiment during the day was largely due to the upcoming domestic creditors meeting which is scheduled for 20 April,” First Capital said. Furthermore, high net investor activities were evident on JKH and SPEN which partially offset the losses during the day. Moreover, the primary dealer shares witnessed extended profit taking during the day whilst, CFVF came down on their ex-dividend. The turnover was 57% lower than the monthly average of Rs. 1.5 billion, which was marked as the lowest in two weeks.

NDB Securities said high net worth and institutional investor participation was noted in National Development Bank, Hayleys and Ceylon Cold Stores. Mixed interest was observed in Expolanka Holdings, Tokyo Cement Company nonvoting and Vallibel Finance whilst retail interest was noted in Marawila Resorts (rights), Browns Investments and LOLC Finance. 

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index lost 4.60%. The share price of Expolanka Holdings decreased by Rs. 8 to Rs. 165.75.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys) whilst the sector index increased by 0.61%. The share price of Hayleys moved down by 40 cents to Rs. 72.40.

National Development Bank, Tokyo Cement Company nonvoting and Browns Investments were also included amongst the top turnover contributors. The share price of National Development Bank gained 50 cents to Rs. 45. The share price of Tokyo Cement Company nonvoting closed flat at Rs. 48.00. The share price of Browns Investments declined 10 cents to Rs. 5.90.