Stock market ends on mixed note; deals on ComBank boost turnover

• 6% of voting stake of top private bank trades; David Pieris Motor Company picks up 2.5% stake
• Foreigners sell out with Central Bank directive of no cash dividends by banks this year

The Colombo stock market ended yesterday on a mixed note whilst deals on Commercial Bank boosted the turnover to Rs. 3.7 billion. 

Acuity Stockbrokers said the ASPI increased by 0.60% or 26.29 points while the S&P SL20 Index decreased by 1.28% or 22.13 points. First Capital said ASPI index reached its intraday high of 4,425 during the early hours of trading. Later it moved downwards and met with its intraday low of 4,382 prior to closing at 4,394, gaining 26 points.

NDB Securities said ASPI closed in green as a result of price gains in counters such as Distilleries, Dialog Axiata and Ceylon Cold Stores whilst Commercial Bank accounted for 80% of the turnover. 

The share price of Commercial Bank decreased by Rs. 5.30 (9.57%) to close at Rs. 50.10.

ComBank saw 58.4 million of its shares amounting to 6% voting stake traded for Rs. 2.93 billion. Of that foreign selling was 55.4 million shares worth Rs. 2.7 billion. Analysts said the foreign exit was on negative news of Central Bank issuing a directive that banks will not be allowed to declare cash dividends this year. 

Market speculation was that among buyers were David Pieris Motor Company collecting around 2.5% stake and several high net worth investors. 

Premier blue chips declined further by Rs. 5 to close at Rs. 85.40 though yesterday saw lesser volume of 0.97 million shares. JKH continues its dismal run when compared with Rs. 137 level in mid-March 2020. Analysts said in crisis times, given its high liquidity and foreign holding, JKH becomes the notable victim whilst it also leads recovery of the market when it occurs.

Acuity said foreign Investors recorded a net outflow of Rs. 2.9 billion over the day compared to a net outflow of Rs. 329.5 million on Wednesday. 

NDB said high net worth and institutional investor participation was noted in Commercial Bank, Lion Brewery, Sampath Bank and John Keells Holdings. Mixed interest was observed in Distilleries, Tokyo Cement Company and Dialog Axiata whilst retail interest was noted in Access Engineering, LOLC Holdings and People’s Leasing & Finance.

Banks sector was the top contributor to the market turnover (due to Commercial Bank and Sampath Bank) whilst the sector index lost 2.56%. 

Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Lion Brewery and Ceylon Tobacco Company) whilst the sector index increased by 1.25%. The share price of Lion Brewery edged down by Rs. 0.10 (0.02%) to close at Rs. 450.00. The share price of Ceylon Tobacco Company declined by Rs. 19.60 (2.18%) to close at Rs. 880.00.