Tuesday, 24 November 2020 07:28

Budget blues haunt stock market

The Colombo Stock Market opened a fresh week on a negative note, after having failed to rise sharply over a Government touted “development-oriented and investor-friendly” Budget 2021, prompting analysts to claim investor sentiments are bruised more than invigorated.

Despite gains ahead of the Budget, the stock market closed last week less convinced with the ASPI up by a mere 0.04% and the S&P SL20 dropping 0.46%.

Expectations were high yesterday in the new week, but the ASPI declined by nearly 13 points or 0.2%, and the S&P SL 20 declined by nearly 2 points or 0.1%. Turnover was a below average Rs. 1.2 billion.

First Capital said the week started reverting the direction of the market to negative, while recording nearly a four-week low turnover, amidst the month-end atmosphere.

“Index witnessed a gradual downtrend since the beginning of the session as it hit its intraday low of 6,068 during mid-day. Later, market recorded a short-lived bounce back and closed at 6,072, losing 13 points,” it added.

Softlogic Stockbrokers said top traded counters for the day were Dipped Products (Rs. 310 million, whilst its price dipped 2.7%), Expolanka Holdings (Rs. 108.1 million and price up 0.4%), Kelani Tyres (Rs. 72.4 million and price up 0.9%), Central Industries (Rs. 70.6 million and price up 11.2%), and Commercial Bank (Rs. 49 million and price up 0.5%).

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Distilleries, Carson Cumberbatch and Richard Pieris and Company.

It said high net worth and institutional investor participation was noted in Dipped Products. Mixed interest was observed in Kelani Tyres, Commercial Bank and Ceylon Grain Elevators, whilst retail interest was noted in Expolanka Holdings, Central Industries and Chemanex.

The Materials sector was the top contributor to the market turnover (due to Dipped Products), whilst the sector index lost 0.50%. The share price of Dipped Products decreased by Rs. 8.60 (2.70%), closing at Rs. 309.40, whilst foreign holdings decreased by 141,263 shares.

The Capital Goods sector was the second highest contributor to the market turnover (due to Central Industries), whilst the sector index decreased by 0.38%. The share price of Central Industries recorded a gain of Rs. 11.10 (11.19%), to close at Rs 110.30.

Expolanka Holdings, Kelani Tyres and Commercial Bank were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 0.10 (0.38%), to close at Rs. 26.50. The share price of Kelani Tyres moved up by Rs. 0.70 (0.88%), to close at Rs. 80.70. The share price of Commercial Bank appreciated by Rs. 0.40 (0.53%), to close at Rs. 76.50.


(FT)

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