CSE achieves much needed recovery but trading activity low

 The Colombo stock market staged a much needed recovery yesterday though the gain was muted to 0.4% amidst low turnover and activity.

Both indices ASPI and S&P SL20 achieved identical increases of 0.45%. This was after suffering success dips and down by 20%  since the end of April.  Turnover was Rs. 900 million involving a low 39.5 million shares.

Asia Securities said the indices regained ground after two sessions of downward movement on Tuesday (04) mainly supported by price gains in LOFC (+3.2%), LMF (+2.9%), DIPD (+2.6%), and LLUB (+2.4%). MELS (+7 points), SPEN (+6 points), and LOLC (+5 points) came in as the major index drivers of the ASPI. Overall, 99 counters recorded price gains while 56 settled with losses.

Turnover was led by HAYL (Rs. 86mn), DIPD (Rs. 67mn), and DIAL (Rs. 48mn).

Foreigners recorded a net outflow of Rs. 31mn. Net foreign buying topped in EAST.N at Rs. 13.8mn and selling topped in DIAL at Rs. 39mn.

First Capital said the broader market experienced an upward momentum during the first few hours of trading, yet remained sideways towards the latter as investor participation remained low, ultimately resulting in both indices closing in the green. On days marked by uncertainty, the limited participation of HNWIs was evidenced by the lack of crossings, while index-heavyweights such as MELS, SPEN, LOLC, CTC and LLUB exerted significant positive influences on both the index and turnover. Additionally, a recovery in Banking sector stocks was observed.

Turnover gained 31.1% from Monday though down 48.1% compared to the month’s average of Rs. 1.7Bn. The Food, Beverage, and Tobacco sector led turnover at 20.0%, with the Capital Goods and Materials sectors jointly contributing 38.2% to the overall turnover.

NDB Securities said high net worth and institutional investor participation were noted in Nations Trust Bank. Mixed interest was observed in Hayleys, Dipped Products and Lanka Milk Foods whilst retail interest was noted in Dialog Axiata, LOLC Finance and Browns Investments.

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (Lanka Milk Foods) whilst the sector index gained 0.63%. The share price of Lanka Milk Foods recorded a gain of 90 cents to Rs. 31.50.

The Capital Goods sector was the second highest contributor to the market turnover (Hayleys) whilst the sector index increased by 0.22%. The share price of Hayleys increased by 60 cents to Rs. 94.60.

Dipped Products, Dialog Axiata and Nations Trust Bank were also included among the top turnover contributors. The share price of Dipped Products gained 90 cents to Rs. 34.90. The share price of Dialog Axiata closed flat at Rs. 11.10. The share price of Nations Trust Bank appreciated by 25 cents to Rs. 122.50.

Separately Lanka IOC and Vidullanka Plc declared their dividends of Rs. 5 and 30 cents respectively.