The Colombo Stock Exchange (CSE) saw a sharp decline yesterday, continuing its bearish trend, though turnover remained relatively low. The S&P SL20 index dropped by 2%, while the ASPI fell by 1.9%, with a turnover of Rs. 2.3 billion involving 135 million shares.
According to First Capital, selling pressure and profit-taking sentiment persisted, dragging the ASPI down by 327 points. While a brief recovery attempt was seen around midday, the market continued its downward trend throughout the day.
The banking sector exerted the most downward pressure, with Commercial Bank (COMB) and Hatton National Bank (HNB) among the top negative contributors. Other key contributors to the decline included Ceylinco Insurance (CINS), Melstacorp (MELS), and LOLC. Positive contributors were weak, with Guardian Capital Partners (GUAR) and RIL Property among the few that made slight gains.
Sector and Investor Activity
- The Banking sector led market turnover, contributing 30%, followed by Capital Goods and Food, Beverage & Tobacco sectors, which jointly contributed 35%.
- Foreign investors were net sellers, leading to a Rs. 64.4 million outflow.
- High-net-worth and institutional investors were active in John Keells Holdings, Royal Ceramics, and Hatton National Bank.
- Retail investor interest was seen in Nation Lanka Finance, Waskaduwa Beach Resort, and SMB Leasing.
Key Stock Movements
- Hatton National Bank fell Rs. 9 to Rs. 318.50.
- Sampath Bank dropped Rs. 1.25 to Rs. 120.50.
- John Keells Holdings declined 30 cents to Rs. 21.90.
- First Capital Holdings decreased by Rs. 1 to Rs. 44.80.
- Browns Investments dropped 20 cents to Rs. 7.90.
Market analysts anticipate continued volatility as investor sentiment remains cautious amid global and local economic factors.