CSE manages to post modest recovery

The Colombo stock market yesterday managed to achieve a modest recovery after two days of declines.

The active S&P SL20 gained by 0.3% and the benchmark ASPI by 0.2%. Turnover was Rs. 801 million involving 33.5 million shares. Foreign investors turned net sellers after seven consecutive sessions, with a net outflow of Rs. 28.1 million.

Asia Securities said after two days of downward momentum, the indices closed in green on supported by price increases in BIL (+3.6%), LOFC (+3.6%), HAYL (+1.5%), SAMP (+1.4%), and DIPD (+1.4%). MELS (+11 points), CINSN (+10 points) and SAMP (+9 points) came in as the biggest index movers for the day. The breadth of the market was positive with 83 price gainers and 76 price losses.

Turnover was led by off-board transactions in AGAL (Rs. 350 million).

Foreigners recorded a net outflow of Rs. 28.1 million. Net foreign buying topped in LFIN at Rs. 30.4 million and selling topped in JKH at Rs. 12.9 million.

First Capital said the Colombo bourse staged a recovery from the two consecutive losses as bargain buying on selected counters led investor sentiment to improve as the index closed the day at 11,812, gaining 26 points. MELS, CINS, SAMP, BIL and HAYL contributed to the index positively. Retail investors and HNWIs remained on the sidelines as turnover surged to Rs. 801.2 million, doubling yesterday’s turnover but marking a 54% decrease from the month’s daily average.

Crossing transactions accounted for 46.6% of the overall turnover, driven by 2 off-board transactions namely AGAL and SAMP.  Among those, a notable trade was done off-board on AGAL, totalling to 10.9 million shares traded at Rs. 32 per share, representing a 7% stake. The Food, Beverage and Tobacco sector contributed 54% to the turnover whilst Banking and Capital Goods sectors jointly contributed 22% to the overall turnover. 

NDB Securities said crossings were witnessed in Agalawatte Plantations and Sampath Bank accounting for 46.6% of the turnover. Mixed interest was observed in Browns Investments, John Keells Holdings and National Development Bank whilst retail interest was noted in Blue Diamonds Jewellery Worldwide, LOLC Finance and Nation Lanka Finance. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Agalawatte Plantations and Browns Investments) whilst the sector index lost 0.35%. The share price of Agalawatte Plantations decreased by 20 cents to 

Rs. 33. The share price of Browns Investments gained 20 cents to Rs. 5.70.

The Capital Goods sector was the second highest contributor to turnover (due to John Keells Holdings) whilst the sector index decreased by 0.23%. The share price of John Keells Holdings recorded a loss of one Rupee to Rs. 199.

LB Finance and Sampath Bank were also included amongst the top turnover contributors. The share price of LB Finance moved up by 50 cents to 

Rs. 68.50. The share price of Sampath Bank appreciated by Rs 1.10 to Rs. 77.40.