Fuel hike drags down investor sentiment at CSE

The Colombo stock market began a fresh week on a negative note as analysts pinned it on the fuel hike and its impact weighing-in on investor sentiment. 

The All Share Price Index dipped by 28 points or 0.37% and the S&PSL20 lost 12 points or 0.4%. Turnover was below average at Rs. 1.36 billion involving 69 million shares. 

First Capital said bourse closed the first trading day of the week negative, snapping the three-day gaining spree while recording an almost three-week low turnover due to unprecedented fuel price turmoil. 

“Index moved laterally over the first 30 minutes of the session and thereafter began rapidly declining, reaching an intraday low of 7,552 during mid-day. However, the index subsequently reversed its direction for the rest of the session while closing at 7,582 losing 28 points,” First Capo. 

Turnover was led by the Capital Goods sector, closely followed by the Diversified Financials sector accounting for a joint contribution of 46%. 

Asia Securities said the indices witnessed an initial decline as the ASPI dipped to a level of 7,554 (0.73%). However, the indices recovered gradually during the session led by price gains in LIOC, DIPD and MELS and closed the session with marginal losses. 

Turnover was recorded at moderate levels, dominated by HNI and retail activity. 

Capital Goods, Diversified Financials, Banks and Materials sectors led activity, collectively accounting for 66.3% of turnover. 

Asia said foreigners recorded a net outflow of Rs. 56.2 million while their participation remained flat at 5.5% of turnover (previous day 5.5%). Estimated net foreign buying topped in MELS.N at Rs. 9.9 million and net foreign selling topped in PLC.N at Rs. 70.8 million.