The Colombo Stock Exchange (CSE) experienced a notable downturn yesterday as the All Share Price Index (ASPI) slipped to a negative Year-to-Date (YTD) return for the first time in 2024, closing down by 0.65% with a YTD negative return of 0.78%. The S&P SL20 index also saw a sharp decline of 1.17%, increasing its YTD negative return to 4.74%.
The market turnover for the day reached Rs. 1 billion, with 28 million shares being traded. According to First Capital, the market extended its decline for the fourth consecutive day, with significant price drops in Commercial Bank (COMB), John Keells Holdings (JKH), Sampath Bank (SAMP), and Hatton National Bank (HNB). Despite a slight recovery midday, the ASPI closed at 10,571, down by 92 points.
The Banking sector and Capital Goods sector, led by stocks such as COMB, SAMP, HNB, DFCC, and JKH, were the top negative contributors to the index. However, the market witnessed improved participation from both retail and high-net-worth investors, resulting in a 46.9% increase in turnover compared to the monthly average. Off-board transactions made up 39.7% of the day’s total turnover.
The Capital Goods sector was the leading contributor to turnover, driven by John Keells Holdings and Richard Pieris & Company, although the sector index dropped by 1.36%. The share price of John Keells Holdings fell by Rs. 3 to Rs. 161, while Richard Pieris & Company’s share price dropped by 50 cents to Rs. 20.
The Banking sector was the second-highest contributor to turnover, led by Hatton National Bank and Commercial Bank. However, the sector index declined by 1.56%, with Hatton National Bank losing Rs. 2 to Rs. 157 and Commercial Bank dropping Rs. 1.30 to Rs. 80.40.
Notably, Alliance Finance Company was among the top turnover contributors, though its share price closed flat at Rs. 100. Despite the overall bearish sentiment, foreign investors remained net buyers, bringing in an inflow of Rs. 131.1 million.
With bearish sentiment persisting, the CSE is showing signs of increased volatility as key sectors continue to experience pressure from both local and international market conditions.