CSE winning streak ends amid thin volumes

Sri Lanka, May 02 (Capital Leads) – After five consecutive sessions of gains, the Colombo Stock Exchange (CSE) recorded losses today as the market hovers over more than six-year low amid thin trading volumes.

The broad market All Share Price Index (ASPI), losing 19.63 points, dropped to 5,458.78 points, 0.36 percent lower than the previous session, while more liquid S&P SL20 Index slipped 4.29 points to close at 2,623.17 points, a decline of 0.16 percent.

With no off-board transactions, the total number of shares traded stood at 7.1 mn, less than half of the YTD average daily volume of 15.2 mn. Daily market turnover meanwhile slumped to LKR148.6 mn (USD0.8 mn), its lowest since January 04 and nearly a quarter of YTD average daily turnover of LKR586.3 (USD3.3 mn).

Hemas Holdings (HHL) led the day’s turnover generation with 22 percent of contribution as the stock edged up 0.69 percent in value despite foreign selling. Falling 1.80 percent in value, John Keells Holdings (JKH) made up 18 percent of the day’s turnover as the stock continued to attract foreign investor interest.

As a result, Diversified Holdings with 45 percent of contribution spearheaded the sectoral contribution to the turnover followed by 28 percent from Banks, Finance, and Insurance stocks.

However, net foreign buying continued for the third straight session as overseas investors bought shares worth a net LKR9.4 mn (USD53.4k), slightly narrowing the YTD net foreign outflow to LKR4.3 bn (USD24.7 mn).

Disclosure: I/We have no investments in the stocks mentioned in the above article and don’t intend to open any within the next 72 hours. I wrote this article for myself, and it expresses my opinion. I/We receive no compensation, nor do I/We have any business relationship with any companies whose stocks are mentioned in the article.

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