ASPI rebounds, S&P SL20 dips amidst mixed local investor sentiment

The Colombo stock market closed yesterday on a mixed note amidst low investor activity.

The benchmark ASPI gained by 60 points or 0.6% and the active S&P SL20 dipped by over 3 points. Turnover was Rs. 1.5 billion involving 52 million shares down from Rs. 2.1 billion and 239 million shares on Monday.

Asia Securities said the ASPI rebounded after two sessions of losses while the S&P SL20 index remained in red territory due to price losses in LIOC (-3.3%), AAIC (-3.1%), BIL (-1.6%), and MELS (-1.7%). It said a notable pick-up in buying interest was witnessed in GLAS, resulting in the share gaining 12.9% during the session. Similarly, TKYON (+4.0%), TKYOX (+6.8%), CCS (+2.8%), AEL (+3.7%), and DIST (+2.6%) continued to scale higher on steady retail buying.  Following consecutive sessions of profit-taking, banking sector counters saw domestic buying, led by HNBN (+6.0%), HNBX (+4.6%), SAMP (+1.8%), NDB (+6.4%), and DFCC (+2.7%). The ASPI declined to an intra-day low of 9,457 (-34 points) at market open, however, reversed course in mid-day trading and trended towards the 9,600 level before consolidating in the range of 9,550-9,570. Overall, 90 stocks closed in green while 77 settled with losses.

Turnover was supported by HNB (Rs. 214 million), LIOC (Rs. 106 million), and HAYL (Rs. 92 million). 

Foreigners generated a net inflow of Rs. 139 million driven by HAYL (Rs. 47 million) and JKH (Rs. 34million). Selling topped in HNB.N at Rs. 12.4 million.

First Capital said the bourse closed in green after two days of losses as the banking and diversified financial counters regained upward momentum, with retail investor participation observed on undervalued index heavy weights. 

The Index rallied with a substantial gain reaching an intraday high of 9,597 and closed the day at 9,551 gaining 60 points. The market witnessed a recovery as investor buying sentiment improved with the expectation on the IMF board level agreement to be inked on 20 March 2023. 

NDB Securities said high net worth and institutional investor participation was noted in Hayleys, Hatton National Bank and John Keells Holdings. Mixed interest was observed in Lanka IOC, ACL Cables and Expolanka Holdings whilst retail interest was noted in Softlogic Capital, SMB Leasing nonvoting and Piramal Glass.

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys, John Keells Holdings and ACL Cables) whilst the sector index edged up by 0.05%. The share price of Hayleys moved up by 10 cents to Rs. 77.80. The share price of John Keells Holdings recorded a

loss of 50 cents to Rs 141.00. The share price of ACL Cables appreciated by Rs. 2.80 to Rs. 85.70.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank) whilst the sector index increased by 2.21%. The share price of Hatton National Bank increased by Rs. 7.50 (6.04%) to Rs. 131.75. Lanka IOC was also included amongst the top turnover contributors. The share price of Lanka IOC lost Rs. 6.25 to Rs. 181.50.