Dismal first month for CSE

• ASPI down 3.2%; S&P SL 5.6% and Rs. 2 b net foreign outflow

The Colombo stock market ended its first month of 2024 on a dismal note with investor sentiment hardly mirroring the positive picture portrayed by the Government.

The benchmark ASPI closed January down by 3.2%, the active S&P SL20 more sharply by 5.6%. The month also saw net foreign outflow crossing the Rs. 2 billion mark.

The negative start was despite the market ending 2023 as one of the best performing with ASPI up 25%, S&P SL20 by 16% and a net foreign inflow of Rs. 4 billion.

However, the market closed yesterday on the up in terms of ASPI supported by a late-hour pick-up while the S&P SL20 index ended in red. SLTL (+4.6%), CALT (+4.5%), FCT (+9.1%), CFVF (+5.3%), CCS (+3.1%), and HAYC (+2.2%) closed with price gains during the session. Overall, 58 stocks closed higher while 73 settled with losses.

Turnover was Rs. 696 million led by SAMP (Rs. 131 million), HNBN (Rs. 94 million), and JKH (Rs. 51 million). Foreigners remained on the selling side, generating a net outflow of Rs. 173 million driven by HNBN (Rs. 92 million), SAMP (Rs. 44 million), and JKH (Rs. 23 million). 

First Capital said the Bourse closed in the green for the second consecutive day, with yet another marginal increase of six points from yesterday. ASPI fluctuated from red to green throughout the session, as mixed sentiment was observed among the investors today but ended the day at 10,311 and thereby concluded the month of January with a monthly drop of 343 points. 

SAMP was the largest contributor to the total market turnover with an off- board transaction of 1 million shares at Rs. 68 per share.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, Sampath Bank and John Keells Holdings. Mixed interest was observed in Dialog Axiata, Expolanka Holdings and Lanka IOC whilst retail interest was noted in Browns Investments, Marawila Resorts and Softlogic Capital. 

The Banking sector was the top contributor to the market turnover (due to Sampath Bank and Hatton National Bank) whilst the sector index lost 0.32%. The share price of Sampath Bank increased by 20 cents to Rs. 68.20. The share price of Hatton National Bank closed flat at Rs. 155.

The Diversified Financials sector was the second highest contributor to the market turnover whilst the sector index increased by 1.09%.

John Keells Holdings, Dialog Axiata and Browns Investments were also included amongst the top turnover contributors. The share price of John Keells Holdings moved up by 50 cents to Rs. 179.25. The share price of Dialog Axiata closed flat at Rs. 9. The share price of Browns Investments closed flat at Rs. 4.20.