CSE starts fresh week with turnover at 4-month low

The Colombo stock market began a new week on a bearish note with turnover plunging to four month low as investors remained wary.

Both indices declined by over 0.3% and turnover was Rs. 494.3 million involving 50 million shares.

Asia Securities said the market commenced the week on a downbeat note with the indices declining amid limited retail, HNI and institutional participation. Investors were seen taking a “wait-and-see” approach following the long holidays and media reports on elections over the weekend.

Price losses in NDB (-1.0%), LMF (-2.2%), LOLC (-1.6%), LOFC (-1.5%), LIOC (-1.7%), SEYB (-2.0%), and HHL (-1.0%) weighed on the indices during the session. PLC (+1.7%), WATA (+1.0%), and AGST (+2.3%) recorded price gains in an otherwise subdued session.

LOLC (-5 points), COMBN (-5 points), and HNBX (-3 points) ended as the biggest laggards on the ASPI. Overall, 69 stocks ended in green while 105 settled with losses.

Turnover dropped to a four-month low whilst turnover toppers were BIL (Rs. 42 million), PABC (Rs. 23 million), and LFIN (Rs. 22 million).

Foreigners recorded a net inflow of Rs. 7.9 million. Net foreign buying topped in JKH at Rs. 6.1 million and selling topped in DIAL at Rs. 5.3 million

First Capital said the week started with both indices closing in the red, diverging from the previous session’s positive trend, ending at 12,311, losing 38 points. This is mainly due to prevailing uncertainties in the country and proceeding with cautious investor stance, in anticipation of the forthcoming CBSL’s Monetary Policy meeting announcement scheduled for 28 May 2024. LOLC, COMB, LIOC, MELS and NDB contributed to the index negatively, out shadowing the positive contributors. Turnover marked an 80% reduction from the month’s average of Rs. 2.4 billion.

This decline reflects decreased investor participation, recording less than 10,000 trades during the day. Banking sector led turnover at 21%, followed by the Food Beverage and Tobacco and Diversified Financials sectors jointly contributing 39% to the overall turnover.

NDB Securities said high net worth and institutional investor participation remained subdued for the day whilst mixed interest was observed in Pan Asia Banking Corporation, LB Finance and John Keells Holdings. Retail interest was noted in Browns Investments, Waskaduwa Beach Resort and People’s Leasing and Finance.

The Banking sector was the top contributor to the market turnover whilst the sector index lost 0.39%. The share price of Pan Asia Banking Corporation lost 20 cents to Rs. 22.40.

The food, Beverage and Tobacco sector was the second highest contributor to the market turnover whilst the sector index edged down by 0.03%. The share price of Browns Investments closed flat at Rs. 6.40.

LB Finance, People’s Leasing and Finance and John Keells Holdings were also included among the top turnover contributors. The share price of LB Finance closed flat at Rs. 70.60. The share price of People’s Leasing & Finance recorded a gain of 20 cents to Rs. 12.20.

The share price of John Keells Holdings edged up 25 cents to Rs. 209.