CSE sees choppy day of trading and investor sentiment

The Colombo stock market yesterday declined on a choppy day of trading and investor sentiment. 

The benchmark ASPI dipped by 4 points and the active S&P SL20 by 1 point. 

Turnover was Rs. 1.65 billion involving 65.8 million shares.

Asia Securities said investors yesterday maintained a cautious approach in anticipation of the IMF’s second review under the EFF program. 

PLC (+4.0%) and HAYL (+2.6%) saw sharp price gains during the session on the back of increased investor activity from HNI and institutional investors. Furthermore, AAIC (+3.6%), COCR (+2.5%), CINS (+2.4%) and VFIN (+1.8%) recorded price gains during the session. Nevertheless, HNB (-0.6%), JKH (-0.5%) and RCL (-0.3%) closed with price losses. HAYL (+8 points) came in as the biggest index mover during the session while HNB (-4 points) ended as the major laggard on the ASPI. Overall, 75 stocks closed in green while 83 settled with losses.

Turnover was driven by PLC (Rs. 216 million), HAYL (Rs. 189 million), and JKH (Rs. 118 million).

Asia also said foreigners recorded a net outflow of Rs. 39.1 million. Net foreign buying topped in VFIN at Rs. 10.6 million and selling topped in JKH at Rs. 26 million.

First Capital said the market experienced a session of mixed sentiment and moderate turnover, as uncertainty surrounding the upcoming IMF 2nd review. Both retail investors and HNWIs made a significant contribution to the index, while conglomerates, banks, and leasing companies gained momentum, alongside the hotel sector counters. HAYL, COMB, PLC, VLL and HHL emerged as significant contributors to the index.  The Capital Goods sector led the turnover at 24.3%, with Diversified Financials and Banking sectors jointly contributing 45.3% to the overall turnover. 

NDB Securities said high net worth and institutional investor participation was noted in Commercial Bank, Hatton National Bank and John Keells Holdings. Mixed interest was observed in Hayleys, People’s Leasing & Finance and Vallibel Finance whilst retail interest was noted in Marawila Resorts, Browns Investments and LOLC Finance. 

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys and John Keells Holdings) whilst the sector index lost 0.12%. The share price of Hayleys gained Rs. 2.75 to Rs. 108. The share price of John Keells Holdings moved down by one Rupee to Rs. 203.

The Diversified Financials sector was the second highest contributor to the market turnover (due to People’s Leasing & Finance) whilst the sector index decreased by 0.19%. The share price of People’s Leasing & Finance increased by 50 cents to Rs. 13. Hatton National Bank and Commercial Bank were also included amongst the top turnover contributors. The share price of Hatton National Bank recorded a loss of Rs. 1.25 to Rs. 204.50. The share price of Commercial Bank appreciated by 50 cents to Rs. 109.25.