CSE sustains positive momentum

The Colombo stock market sustained its positive momentum for the fifth consecutive session yesterday though the gains by the indices were lower in comparison to Monday.

The ASPI and S&P SL20 improved by 0.2% and 0.1% respectively, lower as against 0.5% and 1% on Monday.

Turnover however was higher at Rs. 1 billion (with 32 million shares traded) from Rs. 776 million (with 23 million shares) in the previous day.

Asia Securities said the market posted gains for the fifth straight session mainly led by price increases in MELS (+4.9%), SUN (+2.7%), and LIOC (+1.8%). The ASPI crossed the 10,900 level in early trading, reaching an intra-day high of 10,903 (+52 points). However, the index entered a consolidation phase, maintaining a range between 10,860 and 10,880 in the second half of the session. SUN and WATA witnessed a notable uptick in buying attributed to news reports indicating the potential lifting of restrictions on oil palm cultivation.

Turnover was driven by continued buying activity in EXPO (Rs. 130 million). However, the stock closed in red with a loss of 2.8%. MELS (+20 points) came in as the major driver of the ASPI while EXPO (-8 points) and CARG (-5 points) weighed negatively on the index. The breadth of the market was neutral with 83 price gainers and 82 decliners.

Asia also said foreigners recorded a net outflow of Rs. 17.1 million. Net foreign buying topped in GLAS at Rs. 23 million and selling topped in MELS at Rs. 25.5 million.

First Capital said that the bourse extended its bullish optimism for the fifth straight session as investors remained optimistic ahead of the IMF review meeting.

It said active participation extended on the banking sectors mainly COMB, PABC and SAMP whilst blue chip counters too enticed investor interest. Although the index reached a peak of 10,900, a slowdown post-midday led to a closing of 10,874, gaining 24 points. Notable trading volumes were observed in WATA and SUN, driven by the possible relaxation of the ban on palm oil cultivation. Turnover improved driven by high net worth and institutional investors’ participation in off-board transactions, contributing 11% to the market turnover, whilst, banks and food, beverage and tobacco sectors jointly contributed 42%.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Melstacorp, and Expolanka Holdings. Mixed interest was observed in Lanka IOC, Alumex and Sunshine Holdings whilst retail interest was noted in Softlogic Capital, Pan Asia Banking Corporation and Browns Investments.

The Banking sector was the top contributor to the market turnover whilst the sector index gained 0.36%. Food, beverage and tobacco sector was the second highest contributor to the market turnover (due to Melstacorp and Sunshine Holdings) whilst the sector index increased by 1.05%. The share price of Melstacorp gained Rs. 4.20 to Rs. 89.30. The share price of Sunshine Holdings moved up by Rs. 1.40 to Rs. 53.70.

Expolanka Holdings, Lanka IOC and John Keells Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings decreased by Rs. 4.25 to Rs. 145. The share price of Lanka IOC recorded a gain of Rs. 2 to Rs. 111. The share price of John Keells Holdings closed flat at Rs. 192.