CSE dips cutting short Wednesday’s rebound

The Colombo stock market’ rebound on Wednesday was short-lived as it ended in the negative territory yesterday amidst investor concerns over macro issues and profit taking. 

The active S&P SL20 declined by 0.46% and the benchmark ASPI was down 0.28%. Turnover was Rs. 2.2 billion involving 71 million shares. Foreigners reverted to net selling as well.

Asia Securities said the indices moved downwards with the ASPI dropping to 11,798 points (-33 points). The drop in the ASPI was mainly due to the downward movement in banking stocks SAMP (-2.0%), NDB (-1.3%), COMB (-0.2%), HNB (-0.8%), PABC (-1.7%). Additionally, price losses in COCR (-6.0%), LIOC (-2.1%), CFIN (-2.2%) and TKYO (-1.2%) weighed on the ASPI. 

SAMP (-12 points), LION (-6 points) and HNB (-4 points) ended as the top negative contributors to the ASPI during the session. The breadth of the market turned negative with 111 price decliners and 67 gainers.

Turnover was led by CALT (Rs. 481 million), LMF (Rs. 318 million) and NDB (Rs. 111 million).

Foreigners recorded a net outflow of Rs. 20.7 million. Net foreign buying topped in DFCC at Rs. 23.4 million and selling topped in CFIN at Rs. 22.5 million. 

First Capital said the stock market retreated into negative territory today as profit-taking emerged among retail investors, coupled with mixed sentiment regarding debt restructuring which caused the broader ASPI to close 33 points lower at 11,798, after peaking at an intra-day high of 11,849. 

Blue-chip giants like JKH and MELS, alongside mid-cap firms such as CTC, CDB, and HHL, contributed positively to the ASPI, while HAYL exerted downward pressure. 

Trading was active, with 20,427 transactions recorded. Retail investors engaged in profit-taking, particularly in Banking sector stocks like SAMP and HNB. 

CALT topped daily turnover, accounting for 22%, buoyed by its second interim dividend declaration. The Diversified Financials sector led turnover at 30%, surpassing the Banking sector which contributed 18%, while the Food, Beverage, and Tobacco sector contributed 18%. 

NDB Securities said high net worth and institutional investor participation was noted in National Development Bank, DFCC Bank and Central Finance Company. Mixed interest was observed in Capital Alliance, Lanka Milk Foods and Hemas Holdings whilst retail interest was noted in LOLC Finance, Browns Investments and Ambeon Capital.

The Diversified Financials sector was the top contributor to the market turnover (due to Capital Alliance) whilst the sector index gained 0.46%. The share price of Capital Alliance increased by Rs. 2.50 to Rs. 65.90.

The Banking sector was the second highest contributor to the market turnover (due to National Development Bank) whilst the sector index decreased by 0.82%. The share price of National Development Bank moved down by one Rupee to Rs. 73.50.

Lanka Milk Foods, Hemas Holdings and John Keells Holdings were also included amongst the top turnover contributors. The share price of Lanka Milk Foods gained Rs. 1.70 to Rs. 30. The share price of Hemas Holdings recorded a gain of Rs. 1.80 to Rs. 83.10. The share price of John Keells Holdings appreciated by one Rupee to Rs. 204.