CSE indices dip but turnover rebound to Rs. 5 b

The Colombo stock market yesterday saw indices dip but showed resilience with improved turnover on a mixed day of trading and investor sentiment. 

The active S&P SL20 closed 0.6% down and the benchmark ASPI lower by 0.1%. Turnover was nearly Rs. 5 billion involving 154.4 million shares.

Asia Securities said following a positive start to the session, the indices reversed course on Tuesday due to price declines in EXPO (-1.0%), LOLC (-2.3%), LOFC (-3.7%), and DIPD (-3.0%). The ASPI touched an intra-day high of 9,180 (+92 points or +1.0%) at market open. 

The index dropped down gradually over the course of the session, however managed to close above the 9,000 level. Turnover was boosted by crossings executed in JKH, which accounted for 25.2% of turnover. On the sectoral front, plantation stocks KOTA (+16.0%), HORA (+20.4%), KAHA (+22%), and AGAL (+18%) ended with sharp gains. The breadth of the market turned negative with 92 gainers and 112 decliners.

Asia also said foreigners recorded a net inflow of Rs. 16.5 million while their participation was flat at 1.6% of turnover (previous day 3.5%). Net foreign buying topped in EXPO at Rs. 18.8 million and selling topped in hSenid Business Solutions at Rs. 25 million.

First Capital said after three consecutive days in green, ASPI closed the day in red, down marginally despite recording the highest turnover in a week. ASPI opened the day higher and moved up during the first few minutes into trading however, lost steam afterwards on the back of profit-taking in heavy weights. Eventually, with the substantial recovery in LIOC, index managed to partly recover the losses yet closed the day at 9,072, losing 16 points. 

Notable volumes were witnessed during the session supported by JKH while the Plantation sector continued to surge higher. Turnover improved to Rs. 4.9 billion (+52% cf. monthly average turnover of Rs. 3.2 billion) was largely led by the Capital goods sector (37%) out of which 25% is contributed by the off-board transaction of JKH. Meanwhile, the Food, Beverage and Tobacco sector led the market turnover consecutively with a contribution of 24%.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, hSenid Business Solutions and Renuka Holdings. Mixed interest was observed in Expolanka Holdings, Lanka IOC and CIC Holdings whilst retail interest was noted in Kotagala Plantations, Prime Lands Residencies and Browns Investments. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 0.91%. The share price of John Keells Holdings decreased by Rs. 2 (1.57%) to close at Rs. 125. Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Kotagala Plantations and Lankem Developments) whilst the sector index increased by 0.64%. The share price of Kotagala Plantations recorded a gain of Rs. 1.20 (16%) to close at Rs. 8.70. The share price of Lankem Developments appreciated by 20 cents to close at Rs. 25.90.

Expolanka Holdings and Lanka IOC were also included amongst the top turnover contributors. The share price of Expolanka Holdings lost Rs. 2.25 (0.97%) to close at Rs. 229. The share price of Lanka IOC moved up by Rs. 1.25 (0.70%) to close at Rs. 179.50.