CSE falls post-Avurudu

The Colombo stock market declined yesterday post Avurudu ending wining multiple week winning streak.

Asia Securities said following an extended period of market holidays, the indices started the session on a slow note on Monday (15) with the ASPI falling below the 12,000 levels shortly after the opening bell, reaching an intra-day low of 11,933 (-100 points).

 Banking counters declined during the session as investors opted to cash in profits, resulting in HNBN (-1.6%), HNBX (-1.4%), COMBN (-2.0%), COMBX (-1.4%), SEYBX (-1.6%), NDB (-2.0%), and PABC (-1.3%) closing in red. However, the indices returned to positive territory as the session progressed, supported by price gains in LOFC (+5.2%), LIOC (+2.0%), LOLC (+4.6%), BIL (+1.8%), and JKH (+1.1%). Additionally, the ASPI received a boost from TAP (+17.8%), TJL (+1.6%), MGT (+1.7%), and LMF (+2.5%) during the session.

The index touched a high of 12,047 (+14 points) before consolidating at 12,006 (-27 points).

Turnover came in at Rs. 2.6 billion led by HNBN (Rs. 404 million), MELS (Rs. 354 million), and LOFC (Rs. 163 million). Off-board transactions accounted for 27% of turnover driven by MELS (Rs. 315 million) and HNBN (Rs. 282 million). A net foreign outflow of 315 million was recorded during the session due to net selling in MELS (Rs. 316 million). LOLC (+13 points), LION (+8 points), and JKH (+7 points) came in as the major index drivers while COMBN (-14 points), HNBN (-10 points), and HAYL (-6 points) ended as the biggest laggards on the ASPI. The breadth of the market was negative with 79 price gainers and 103 decliners.

First Capital said the Bourse regressed to the red territory led by the ongoing global uncertainties hovering in the middle-east, breaking the streak of consecutive gains witnessed during the last three weeks. 

The market began on a bearish note, dropping 100 points before rising to an intraday high of 12,048 and closing at 12,006, down 27 points. COMB, HNB and HAYL were the biggest drag on the index while within the banking sector, COMB, HNB, NDB, and DFCC enticed profit-taking following the price gains in the previous weeks. However, Retail interest in LOLC and BIL rose during the day. Meanwhile, Turnover hit Rs. 2.6 billion, 15.2% above the Rs. 2.2 billion monthly average, dominated by the Banking (26%) and Food, Beverage and Tobacco sectors (22%), with a collective contribution of 48%. Foreign investors remained net sellers, with a net outflow of Rs. 315.2 million, amidst moderate participation.