CSE remains positive amidst low turnover

The Colombo stock market remained positive yesterday though on moderate turnover.

Both indices gained by 0.8% and turnover was Rs. 1.4 billion involving 51.2 million shares.

Asia Securities said indices closed in green for the second consecutive session on the back of price increases in CINS (+9.5%), CARG (+3.5%), DIST (+3.0%), EXPO (+1.8%), VFIN (+1.6%), and HHL (+0.6%). Meanwhile, construction sector stocks AEL (+7.2%), ALUM (+6.3%), PARQ (+4.9%), ACL (+4.6%), KCAB (+3.7%), TILE (+1.3%) and RCL (+1.3%) saw a pick-up in buying interest during the session.

CINS (+35 points) came in as the biggest index mover during the session, followed by HAYL (+5.9 points) and CARG (+5.4 points). The breadth of the market remained positive, with 103 price gainers and 81 decliners.

However, the turnover continued at moderate levels, dropping, led by JKH (Rs 147mn), HAYL (Rs 104mn), and MELS (Rs 68mn). 

Foreigners recorded a net outflow of Rs. 19.7mn. Net foreign buying topped in HNB.X at Rs. 44.8mn and selling topped in DIST at Rs 18 m.

First Capital said the bourse showcased an upward yet volatile trend during the day recording lower activity levels, as the index attained to surpass the 11,500 psychological barrier but ended marginally high at 11,533 gaining 94 points registering a dull sentiment.

The Capital Goods sector continued to experience improved interest during the day backing the index exceptionally well alongside selected blue-chip companies namely CINS, HAYL and CARG as they drove the ASPI on a positive momentum.

Turnover experienced lacklustre performance amidst weak investor participation as it was recorded at 43% lower than the monthly average of Rs. 2.6Bn, for a joint majority contribution of 53% by the Capital Goods sector and Food, Beverage and Tobacco sector respectively.

NDB Securities said high net worth and institutional investor participation was noted in Chevron Lubricants, People's Leasing & Finance, and Hayleys. Mixed interest was observed in John Keells Holdings, Melstacorp and ACL Cables whilst retail interest was noted in Browns Investments, Alumex and Access Engineering.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings, Hayleys, ACL Cables and Access Engineering) whilst the sector index gained 1.19%. The share price of John Keells Holdings increased by Rs 1.50 to Rs. 190.

The share price of Hayleys gained Rs 2.20 to Rs 97.20. The share price of ACL Cables recorded a gain of Rs 3.60  to Rs 81.90.

The share price of Access Engineering appreciated by Rs 1.30 to Rs 19.30.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp) whilst the sector index increased by 1.11%. The share price of Melstacorp moved up by 80 cents to Rs 88.30.