Broader local investor sentiment subdued despite high turnover

The Colombo stock market yesterday closed on a mixed note with investors wary despite high turnover on account of deals on Commercial Bank.

The benchmark ASPI closed flat and the active S&P SL20 was down by 0.1%. Turnover was Rs. 4 billion involving 67 million shares.

Asia Securities said the market saw an oscillating session due to mixed performance by the banking counters. COMBN (+0.2%), HNBN (+0.5%), HNBX (+0.3%), DFCC (+0.5%), SEYBN (+2.0%), and NDB (+0.5%) closed in green while SAMP (-0.4%) and NTBN (-0.2%) edged lower during the session. Furthermore, price losses in JKH (-0.2%), PLC (-0.8%), LIOC (-0.2%), HHL (-0.2%), and DIPD (-0.8%) exerted downward pressure on the ASPI. On the other hand, CTC (+3.0%) supported the index during the session. COMBN topped the turnover list on the back of large block trades executed during the session. The stock recorded Rs. 2.8 billion in crossings. JKH saw foreign buying coming in for a third consecutive session with a net inflow of Rs. 128 million. The stock has accumulated Rs. 604 million in net foreign inflow over the last three sessions. Notably, LFIN (Rs. 61 million) saw renewed interest amongst investors during the session. CTC (+11 points) came in as the major driver of the ASPI, followed by BUKI (+4 points), and HNB (+3 points) while LOLC (-3 points) and RICH (-3 points) came in as the biggest laggards. The breadth of the market was neutral with 80 price gainers and 83 decliners.

First Capital said the bourse experienced another day of gentle gains amidst an upturn in market activity and mixed sentiment. The market saw negative sentiment and slow activity at the beginning of the day, gradually experiencing increased momentum and positive investor sentiment by mid-day. ASPI closed at 12,273, marking a 0.02% increase from the previous day, to which the most significant contributors were CTC, BUKI, HNB, SEYB, and COMB, where CTC and BUKI led the way. Heightened activity was displayed within the Banking sector where COMB was notable for contributing considerably to both turnover and ASPI, with a total of 25.3 million shares being traded. A significant number of crossings also took place primarily amongst banks and conglomerates, further reflecting increased activity within the Banking sector. Increased market activity and mixed sentiment can be attributed to the anticipation and expectation of positive news regarding the confirmation of debt restructuring deals. The market overall saw a day of increased activity predominantly within the Banking sector.

NDB Securities said crossings were witnessed in Commercial Bank, Agarapatana

Plantations and Hayleys accounting for 74.8% of the turnover. Mixed interest was observed in John Keells Holdings, Hatton National Bank and LB Finance whilst

retail interest was noted in Browns Investments, Softlogic Capital and Vidullanka.

The Banking sector was the top contributor to the market turnover (Commercial Bank and Hatton National Bank) whilst the sector index gained 0.28%. The share price of

Commercial Bank increased by 25 cents to Rs. 106. The share price of Hatton National Bank moved up by one Rupee to Rs. 206.

The Capital Goods sector was the second highest contributor to the market turnover (John Keells Holdings and Hayleys) whilst the sector index decreased by 0.36%. The share price of John Keells Holdings lost 50 cents to Rs. 206. The share price of Hayleys recorded a gain of 25 cents to Rs. 106.

LB Finance was also included amongst the top turnover contributors with its share price gaining by 50 cents to Rs. 72.30.