CSE dips as investors react negatively to NPP’s below par show at LG polls

Thursday, 8 May 2025 04:08 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday declined as investors reacted negatively to the lower than anticipated performance of the ruling National People’s Power (NPP) at Tuesday’s Local Government (LG) polls.

The NPP won only around 43% of the national vote, down from nearly 62% in last November’s Parliamentary Election. Analysts opined the result signifies waning popularity on the back of lack of effective action by President Anura Kumara Disanayake.

The benchmark ASPI dipped by 120 points or 0.75% and the active S&P SL20 by 0.87%. Boosted by crossings, turnover was Rs. 3.2 billion involving 202.6 million shares.

First Capital said the Colombo Stock Exchange closed lower following the LG election results that signalled political uncertainty, with no clear majority for the ruling party. The ASPI fell 120 points to close at 15,842 after a volatile session that saw early losses, a brief recovery, and a subsequent decline. Major drags on the index included JKH, CINS, COMB, SPEN, and SAMP.

Investor sentiment remained concentrated in the Food, Beverage and Tobacco sector, which accounted for 61% of total turnover, reflecting heightened interest despite the broader market weakness. The Capital Goods and Banking sectors followed, jointly contributing 18%.

Foreign investors remained net sellers, recording a net foreign outflow of Rs. 67.3 million.

Asia Securities said after three sessions of gains, the ASPI closed in the red, dragged by price declines in CINSN (-3.3%), JKH (-2.4%), BIL (-1.3%), and SUN (-0.9%). JKH (-19 points), CINSN (-17 points), and COMBN (-10 points) came in as the biggest laggards for the day. Overall, 56 stocks ended in green while 153 ended with losses.

Market turnover improved, led by AGAL (Rs. 1.7 billion), JKH (Rs. 175 million), and SAMP (Rs. 119 million).

NDB Securities said crossings were witnessed in Agalawatte Plantations, Hatton National Bank, Chevron Lubricants, Sampath Bank, CT Holdings, and John Keells Holdings, accounting for 56.2% of the turnover. Mixed interest was observed in John Keells Holdings, Prime Lands Residencies, and Sampath Bank, whilst retail interest was noted in Nation Lanka Finance, Panasian Power, and LOLC Finance.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Agalawatte Plantations and Browns Investments), whilst the sector index lost 0.61%.

The share price of Agalawatte Plantations decreased by Rs. 0.10 to Rs. 49.80. The share price of Browns Investments declined by Rs. 0.10 to Rs. 7.80. The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings), whilst the sector index decreased by 1.60%. The share price of John Keells Holdings lost Rs. 0.50 to Rs. 20.10.

Sampath Bank and Prime Lands Residencies were also included amongst the top turnover contributors. The share price of Sampath Bank moved down by Rs. 1 to Rs. 109. The share price of Prime Lands Residencies recorded a gain of Rs. 0.40 to Rs. 12.60.

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