Stock Market

Colombo Stock Market Declines Amid Weak Investor Sentiment

The Colombo Stock Exchange (CSE) ended the week on a somber note, as investor confidence remained subdued, impacting the performance of listed equities.

The benchmark All Share Price Index (ASPI) fell by 0.8% over the week, while the S&P SL20 index dropped by 1.3%. Both indices closed in the red on Friday.

Weekly turnover averaged Rs. 577 million, with Friday’s turnover standing at Rs. 575.5 million from 31.4 million shares traded.

First Capital reported mixed sentiments throughout the week. The ASPI closed at 11,633, reflecting a slight 0.06% decline from the previous day. Major contributors to this decline included COMB, JKH, SEMB, NDB, and ASPH. Conversely, gains were noted from HNB, SAMP, HAYL, NTB, and RCL.

Turnover showed a marginal increase from Thursday, with the Banking sector leading in market share, contributing 37.4%, followed closely by the Capital Goods and Food, Beverage, and Tobacco sectors, which together made up 37%.

The market witnessed its first trading day for MFPE, which significantly contributed to the turnover early in the day. Blue-chips and banks remained the primary drivers of turnover. There was a net foreign outflow of Rs. 44.3 million, indicating reduced foreign investment interest. The market experienced mixed sentiments and volatility as investors awaited election outcomes.

NDB Securities highlighted notable participation from high-net-worth and institutional investors in Sanasa Development Bank, John Keells Holdings, and Ceylon Land & Equity. Mixed interest was seen in Hatton National Bank, Commercial Bank, and Nations Trust Bank, while retail interest was observed in Maharaja Foods and SMB Leasing.

Foreign participation remained low, with net selling observed. The Banking sector, led by Sanasa Development Bank, Hatton National Bank, Commercial Bank, and Nations Trust Bank, was the top contributor to turnover but saw a 0.16% decline in its sector index.

Sanasa Development Bank’s share price closed unchanged at Rs. 31. Hatton National Bank’s share price increased by Rs. 1.25 to Rs. 190.75. Commercial Bank’s share price fell by Rs. 1.30 to Rs. 95.10, while Nations Trust Bank’s share price rose by Rs. 2 to Rs. 125.

The Capital Goods sector, influenced by John Keells Holdings, was the second-highest contributor to turnover but saw a slight decrease of 0.05% in its sector index. John Keells Holdings’ share price dropped by 75 cents to Rs. 191.25.