Bourse turns negative in wake of WP curfew

By Hiran H.Senewiratne 

The CSE  once again managed over  Rs.  1 billion in turnover yesterday as well. When the CSE started trading it was a bit positive  but in the latter part of the day it became negative following the government’s  lockdown  announcement in the Western Province region, market analysts said.   

Both indices were negative, i.e. the All Share Price Index went down by 53.10 points and S and P SL20 declined by 10.46 points.  Turnover was Rs. 1.25 billion, continuing the record of over-a-billion figure for the past 35 days. But no crossings were recorded, market analysts said.

In the retail market top five contributors to the turnover were, Expolanka Rs. 128 million (7.5 million shares traded), HNB Rs. 121.6 million (1.07 shares traded), Hemas Holdings Rs. 109 million (1.58 million shares traded), Tokyo Cement (Non Voting) Rs. 98.8 million (1.95 million shares traded) and Dip Products Rs. 63.5 million (210,000 shares traded). During the day  64.63 million share volumes changed hands in 17817 transactions.   The  market reverted to positive territory amidst the continuous spread of COVID-19, while investors adopted a wait-and-see approach, causing the turnover to record less than 40 percent  of the daily average for the month, for the second consecutive session. “Index spiked within the first few minutes of trading, thereafter recording a gradual downtrend for the rest of the session,” sources said.

It is said that  retailers and high net worth individuals dominated market activity. However, activity remained low as investors continued to adopt a wait-and-see approach given the uncertainties surrounding the virus and the month end approaching. “Institutions were seen buying into the blue chips albeit in small volumes,” brokers said.