CSE moves into red territory; both indices dip for the first time in 2023

By Hiran H. Senewiratne

External and internal gloomy environmental conditions moved the CSE into red territory and ended April, sans the New Year season, with both indices suffering a dip for the first time in 2023 yesterday, market analysts said.

The stock market indicated negative due to panic-selling and margin calls. Consequently, the market declined 430 points for 11 consecutive days ending last Friday. But yesterday alone the CSE was down 258 points. Allegations that debt restructuring is happening haphazardly and some psychological factors impacted the bourse negatively, market analysts said.

Further, the financial crisis at a top US bank, “First Republic Bank ”, affected shareholder interest. Regulators orchestrating JPMorgan Chase to acquire the California lender’s assets and deposits is perhaps the best outcome that might have been expected in the circumstances, market sources said.

These internal and external factors created some worries for local and foreign investors as well, market analysts said.

The benchmark ASPI was down 258 points. The latter suffered its second consecutive monthly dip. S and P SL20 went down by 93 points. Turnover stood at Rs 984 million sans any crossings.

In the retail market top seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 189.2 million (1.24 million shares traded), Lanka IOC Rs 78.5 million (481,000 shares traded), Browns Investments Rs 75.2 million (14 million shares traded), Dialog Axiata Rs 34.5 million (3.2 million shares traded), Royal Ceramic Rs 31 million (1.5 million shares traded), Sunshine Holdings Rs 29.8 million (678,000 shares traded) and JKH Rs 27.5 million (200,000 shares traded). During the day 52.4 million share volumes changed hands in 17343 transactions.

The negative sentiments are largely from locals who got a fresh jolt by President Ranil Wickremesinghe’s remarks in Parliament that he will close down the CSE if it dips sharply. Average daily turnover last week was Rs. 878 million, down from Rs. 994 million the previous week, observers said.

Yesterday the Central Bank’s US dollar buying rate was Rs 313.73 and selling rate Rs 328.41.