Bullish investor sentiment on banking and finance stocks boosts Colombo Bourse

Bullish investor sentiment on banking and finance stocks yesterday boosted turnover at the Colombo Bourse and kept indices on the up.

Turnover amounted to Rs. 4.5 billion involving 182.5 million shares as opposed to Rs. 3.1 billion on Tuesday. The benchmark ASPI gained by 1.22% and the active S&P SL20 by 0.7%.

Asia Securities said the ASPI’s steep upward trajectory continued, nearing the 11,000 milestone largely driven by robust investor sentiment in banking and PD stocks.

Selected Non-Bank Finance Institutions added additional support to the index during the session on the back of renewed interest from investors. Following a gap-up to 10,839 (+43 points), the ASPI declined to a low of 10,770 (-26 points) in early trading due to price declines in SLTL (-3.8%), LIOC (-1.7%), HAYL (-1.8%), EXPO (-2.5%), HHL (-1.7%), and DIST (-2.6%).

Subsequently, the index rebounded strongly and moved upwards for the remainder of the session with notable price gains by DFCC (+15.0%), NDB (+6.5%), VFIN (+10.9%), PLC (+6.3%), SEYBX (+11.4%), SAMP (+5.0%), NTBN (+7.1%), FCT (+8.7%), CALT (+2.7%), CFVF (+4.6%), and COMBN (+2.8%).

The banking sector ended with a sharp gain of 4.2% for the day. SAMP (+30 points), DFCC (+26 points), and COMBN (+18 points) came in as the major index movers while CTC (-11 points) and EXPO (-7 points) ended as the biggest laggards on the ASPI. The breadth of the market was positive with 121 price gainers and 84 decliners.

On the activity front, market turnover was driven by SAMP (Rs. 323 million), DFCC (Rs. 319million), FCT (Rs. 308 million), and DIAL (Rs. 228 million).Asia also said foreigners recorded a net outflow of Rs. 45.4million. Net foreign buying topped in PLC at Rs. 36 million and selling topped in SAMP.N at Rs. 82.1million.

First Capital said the bourse commenced its activities on a lower note during the first half of the session observing slight profit taking yet, picked up the momentum towards the latter part of the session to close the day in the green zone at 10,927 gaining 131 points.

Banking sector counters and Treasury share counters backed the index exceptionally well ahead of the weekly treasury bill auction which was held today. However, small and mid-cap shares witnessed mixed investor interest during the day as retail participation continued to remain strong.

NDB Securities said High net worth and institutional investor participation was noted in Dialog Axiata, Dankotuwa Porcelain, and Hatton National Bank. Mixed interest was observed in First Capital Treasuries, Sampath Bank and DFCC Bank whilst retail interest was noted in Browns Investments, RIL Property, and SMB Leasing nonvoting.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank and DFCC Bank) whilst the sector index gained 4.20%. The share price of Sampath Bank increased by Rs 3.40 to close at Rs 71. The share price of DFCC Bank gained Rs 9.60 to Rs 73.50.

The Diversified Financials sector was the second highest contributor to the market turnover (due to First Capital Treasuries and Capital Alliance) whilst the sector index increased by 1.90%. The share price of First Capital Treasuries moved up by Rs 3 to Rs 37.60. The share price of Capital Alliance appreciated by Rs 1.40 to close at Rs 53.40.

Dialog Axiata was also included among the top turnover contributors. The share price of Dialog Axiata recorded a gain of 40 cents to Rs 11.

Separately Expolanka Holdings and Commercial Credit & Finance announced their dividend of Rs 3.48 and One Rupee per share respectively.