CSE begins July bearish

Thursday, 2 July 2020 03:34 -     - {{hitsCtrl.values.hits}}

The Colombo stock market began the month of July with bearish sentiment though turnover was above Rs. 1 billion mark whilst foreigner selling continued.

Acuity Stockbrokers said the bourse ended on a negative note as the ASPI decreased by 0.02% or 1.16 points to close at 5,148.41 points, while the S&P SL20 Index also decreased by 0.44% or 10.05 points to close at 2,258.72.

Turnover decreased by 52.3% relative to Tuesday to amount to Rs. 1.10Bn while crossings for the day amounted to 11.0% of the day’s total turnover. 

Foreign investors recorded a net outflow of Rs. 0.25 billion over the day compared to a net outflow of Rs. 0.60 billion on Tuesday.

First Capital said the bourse ended in the negative territory for the third consecutive session with Banking, Capital Goods and Material counters contributing to 79% of the turnover. It said ASPI was dragged down predominantly due to the price losses in Cargills and Dialog. 

“The Index experienced a volatile movement within the early hours of trading and peaked at 5,160 during mid-day. Subsequently the market moved downward and hit its intraday low of 5,144 before closing at 5,148 losing a mere point,” First Capital said. 

Parcel trades made in JKH, SAMP and CTC contributed to 11% of turnover. 

Market experienced moderate foreign participation dominated by the selling side resulting a net outflow.

NDB Securities said the ASPI edged down as a result of price losses in counters such as Cargills, Dialog Axiata and John Keells Holdings. The S&P SL20 closed in red. 

High net worth and institutional investor participation was noted in John Keells Holdings, Sampath Bank and Ceylon Tobacco Company. 

Mixed interest was observed in Tokyo Cement Company non-voting, Hatton National Bank and Commercial Bank whilst retail interest was noted in Access Engineering and First Capital Holdings. Furthermore, foreigners remained active closing as net sellers mainly due to foreign selling in Tokyo Cement Company non-voting and John Keells Holdings.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Sampath Bank and Commercial Bank) whilst the sector index lost 0.36%. The share price of Hatton National Bank moved down by Rs. 0.30 (0.26%) to close at Rs. 113.00 while the share price of Sampath Bank recorded a loss of Rs. 0.20 (0.16%) to close at Rs. 126.20. Furthermore, the share price of Commercial Bank declined by Rs. 0.80 (1.02%) to close at Rs. 78.00.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.53%. The share price of John Keells Holdings lost Rs. 1.10 (0.90%) closing at Rs. 121.40 whilst foreign holdings decreased by 1,120,244 shares. Tokyo Cement Company non-voting was also included amongst the top turnover contributors. The share price of

Tokyo Cement Company nonvoting increased by Rs. 0.80 (2.73%) closing at Rs. 30.10 whilst foreign holdings decreased by 5,769,991 shares.