CSE remains positive despite low investor activity

The Colombo stock market remained on the up for the second consecutive day though investor activity was relatively subdued.

Both indices gained by over 0.7% and turnover was Rs. 1.25 billion involving 37 million shares. 

Asia Securities said continuing its recovery momentum, the market ended the day in green with the ASPI up 85 points and the S&P SL20 index up 24 points. The Banking sector witnessed higher activity during the session, particularly from HNB (+2.8%), NDB (+1.9%), (+2.2%) and HNBX (+1.0%). Moreover, AGPL (+1.3%), LOLC (+2.1%), GRAN (+2.1%), and LIOC (+1.6%) saw price increases by the session’s close. BREW (+20 points), HNB (+17 points), and LOLC (+7 points) ended as the top contributors to the ASPI. Overall, 112 stocks ended in green while 109 settled with losses.

Turnover was led by JKH (Rs. 222 million), HNB (Rs. 88 million), and DIPD (Rs. 84 million).

Asia also said foreigners recorded a net outflow of Rs. 104.8 million. Net foreign buying topped in COMB.N at Rs. 17.9 million and selling topped in JKH at Rs. 164.5 million.

First Capital said the bourse witnessed another day of gains, initially marked by subdued sentiment, but gathered bullish momentum post mid-day, resulting in the index to close at 12,190 gaining 85 points to reach a one week high. Speculations surrounding external debt restructuring (EDR) and the finalisation of the disbursement of the IMF 3rd tranche stabilised investor sentiment, albeit investors remained cautious. Conglomerates, banks, and export sector counters primarily influenced the index, with BREW, HNB, LOLC, NDB, and DIAL standing out as the most significant contributors. Additionally, balanced participation between retail investors and HNWIs was also observed. 

The Banking sector led turnover at 29.8%, with the Capital Goods and Materials sectors jointly contributing 38.1% to the overall turnover. 

NDB Securities said high net worth and institutional investor participation were noted in John Keells Holdings, Nations Trust Bank and National Development Bank. Mixed interest was observed in Hatton National Bank, Dipped Products and Sunshine Holdings whilst retail interest was noted in Agarapatana Plantations, UB Finance Company rights and LOLC Finance. 

The Banking sector was the top contributor to the market turnover (Hatton National Bank, Nations Trust Bank and National Development Bank) whilst the sector index gained 1.03%. The share price of Hatton National Bank gained Rs. 5.50 to Rs. 201.75. The share price of Nations Trust Bank recorded a gain of 50 cents to Rs. 123.00. The share price of National Development Bank appreciated by Rs. 1.50 to Rs. 80.20.

The Capital Goods sector was the second highest contributor to the market turnover (John Keells Holdings) whilst the sector index decreased by 0.16%. The share price of John Keells Holdings decreased by one Rupee to Rs. 203.

Dipped Products was also included amongst the top turnover contributors. The share price of Dipped Products moved up by 30 cents to Rs. 35.20.

Separately Tejay Lanka and Chevron Lubricants Lanka PLC declared their dividends of 75 cents and Rs. 4 respectively.