CSE remains buoyant with 7-month high turnover

The Colombo stock market remained buoyant with strong gains in indices and 7-month high turnover though foreigners remained net sellers. 

Acuity Stockbrokers said the Bourse ended on a positive note as the ASPI increased by 1.35% or 71.11 points to close at 5,351.03 points, while the S&P SL20 Index also increased by 1.68% or 39.15 points to close at 2,370.29.

Turnover increased by 121.3% relative to Tuesday to amount to Rs. 3.82 billion while the crossings for the day amounted to 33.0% of the total day’s turnover.

Foreign investors meanwhile, recorded a net outflow of Rs. 0.702 billion over the day compared to a net outflow of Rs. 0.118 billion on Tuesday.

First Capital said retailers played the market, rallying to sustain the drive on a positive momentum for the 2nd consecutive session.  Turnover recorded a 7-month high with Capital Goods on the lead, breaking the dominance held by the Banking counters for more than one week.  “A continuous uptrend was recorded by the index since the inception due to the buying interest predominantly in selected Capital Goods and Diversified financials counters and closed at 5,351 with the highest intraday gain after two and half months,” First Capital said. 

It said parcel trades made in AEL, COMB & JKH boosted the turnover contributing 33%. Foreign investors continued to be on an exit strategy recording low participation.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Browns Investments, John Keells Holdings and LOLC Holdings.

High net worth and institutional investor participation was noted in Access Engineering, Lion Brewery and John Keells Holdings. Mixed interest was observed in LOLC Holdings, whilst retail interest was noted in Browns Investments and Expolanka Holdings.

Foreigners closed as net sellers mainly due to foreign selling in John Keells Holdings. Capital Goods sector was the top contributor to the market turnover (due to Access Engineering and John Keells Holdings) whilst the sector index gained 2.53%. The share price of Access Engineering increased by Rs. 1.60 (7.80%) to close at Rs. 22.10 while the share price of John Keells Holdings gained Rs. 4.50 (3.47%) closing at Rs. 134.10 whilst foreign holdings decreased by 3,179,585 shares.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank) whilst the sector index increased by 0.67%. The share price of Commercial Bank recorded a gain of Rs. 0.60 (0.73%) to close at Rs. 83.10.

Lion Brewery and Browns Investments were also included amongst the top turnover contributors. The share price of Lion Brewery moved down by Rs. 40.30 (7.19%) to close at Rs. 520.00 while the share price of Browns Investments appreciated by Rs. 0.50 (22.73%) to close at Rs. 2.70.

CIC Holdings announced an interim dividend of Rs. 1.00 per share.