CSE posts rebound in February after January dip; foreigners remain net sellers

The Colombo stock market managed to regain in February on the strength of improved investor sentiment after suffering a negative start for 2024 in January.

The benchmark ASPI gained by 3.3% in February and the active S&P SL20 improved by 4.9%. In contrast, January saw ASPI down 3.2% and S&P SL by 5.6%.

Average daily turnover in February was Rs. 1.73 billion as against Rs. 715 million in January.

Though closing February positively, the CSE yesterday saw both indices down. S&P SL20 dipped by 20 points or 0.6% and ASPI by over 26 points. Turnover was Rs. 1.6 billion involving 43 million shares.

Asia Securities said the indices closed down mainly due to price losses in JKH (-1.2%), RCL (-2.3%), and LOFC (-2.4%). CCS (+6.9%) saw a significant pick-up in buying interest during the session driven by the company’s announcement of a partnership with Reliance Consumer Products Ltd. On the other hand, ACL (+3.0%) saw renewed buying from investors. Furthermore, UAL (+3.8%), AHPL (+3.4%), AGST (+3.0%), EXPO (+1.2%), and LIOC (+1.0%) saw price increases during the session. Turnover was driven by JKH (Rs. 445 million), COMBN (Rs. 196 million), ACL (Rs. 175 million), and LION (Rs. 101 million). CARG (-9 points), HNB (-8 points) and JKH (-7 points) ended as the biggest laggards on the ASPI while CCS (+5 points) came in as the major driver of the ASPI for the day. Overall, 77 stocks closed higher while 89 settled with losses.

Asia also said a net foreign outflow of Rs. 498 million was recorded due to net selling in JKH (Rs. 360 million) and COMB (Rs. 143 million). 

First Capital the bourse closed in the red after two consecutive sessions of gains. ASPI observed a downward trend from the beginning of the session and carried it forward until the end, closing at a 27-point fall to 10,652 despite investor participation continuing to improve.

Hotel sector counters observed an increased interest following the news of over 10,000 tourists arriving on 24 February, which was the highest number of daily arrivals since the COVID-19 pandemic. Large quantities were traded on Food & Beverage counters as well; notably, CCS and LION. The main negative contributors to the index were CARG, HNB and JKH whilst the main positive contributors were CCS, EXPO and NDB.  Foreign investors remained net sellers with a large net foreign outflow of Rs. 489.1 million.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Commercial Bank and Lion Brewery. Mixed interest was observed in ACL Cables, Expolanka Holdings and Hayleys Fabric whilst retail interest was noted in Browns Investments, Vallibel Power Erathna and Blue Diamonds Jewellery Worldwide.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and ACL Cables) whilst the sector index lost 0.84%. The share price of John Keells Holdings decreased by Rs. 2.25 to Rs. 185.75. The share price of ACL Cables moved up by Rs. 2.30 to Rs. 77.80.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Lion Brewery) whilst the sector index increased by 0.33%. The share price of Lion Brewery recorded a gain of Rs. 10 to Rs. 950.

Commercial Bank and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Commercial Bank lost 40 cents to Rs. 90. The share price of Expolanka Holdings appreciated by Rs. 1.75 to Rs. 147.75.

Separately Ceylon Tobacco Company and Union Assurance announced their dividends of Rs. 31 and Rs. 8.75 per share respectively.