Active investors keep CSE on the up

The Colombo stock market yesterday remained on the up despite some degree of quick profit taking by some investors.

The active S&P SL20 gained by 0.8% and the benchmark ASPI by 0.5%. On Wednesday, the indices gained sharply by 1.92% and 1.34% respectively.

Turnover yesterday was Rs. 1.22 billion involving 57.5 million shares. On Wednesday turnover was Rs. 1.43 billion.

First Capital said the broad market experienced active trading during the first few trading hours, yet enticed profit taking and volatile sentiment as investors took a wait and see approach ahead of the election.

The ASPI started the session on a bullish note, reaching an intraday high of 10,959, gaining over 100 points in the morning hours. However, the index retreated during midday and rebounded after midday, closing the session in green for the 3rd consecutive day at 10,885, gaining only 58 points. The Banking sector counters, and index-heavy weights contributed to the index positively whilst COMB, MELS, NDB, BIL and JKH emerged as the top positive contributors to the index.

Amidst the active participation of both retail and HNW investors, turnover represented a 34.2% increase from the month’s average. The Banking sector solely contributed 45% to the overall turnover whilst the Food, Beverage and Tobacco sectors and Materials sectors jointly contributed 22% to the total turnover. Foreign investors remained net sellers, recording an outflow of Rs. 39 million.

NDB Securities said indices closed in green as a result of price gains in counters such as Commercial Bank, Melstacorp and National Development Bank.

High net worth and institutional investor participation was noted in Nations Trust Bank, Hatton National Bank and Lanka Aluminium Industries. Mixed interest was observed in Commercial Bank, Sampath Bank and Pan Asia Banking Corporation whilst retail interest was noted in SMB Leasing, LOLC Finance and Browns Investments.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Commercial Bank, Sampath Bank, Nations Trust Bank and Pan Asia Banking Corporation) whilst the sector index gained 1.17%. The share price of Hatton National Bank increased by 25 cents to Rs. 164.25. The share price of Commercial Bank gained Rs. 1.80 to Rs. 85. The share price of Sampath Bank moved down by 10 cents to Rs. 72.20. The share price of Nations Trust Bank recorded a gain of one Rupee to Rs. 114.25. The share price of Pan Asia Banking Corporation appreciated by 60 cents to Rs. 19.40.