CSE sees volatility before late recovery

Wednesday, 19 February 2025 00:04 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday displayed erratic behaviour with wild swings but managed to close marginally on the up amidst moderate turnover.

The benchmark ASPI and active S&P SL 20 indices shot up in early trade but slumped before staging a late recovery.

They eventually closed with a gain of 0.2% and 0.6% respectively. Turnover was Rs. 5.5 billion involving 166.5 million shares.

The optimism evident on Monday in tandem with President and Finance Minister Anura Kumara Dissanayake’s presentation of the 2025 Budget was absent yesterday. The struggle was despite several companies announcing impressive dividends.

Frist Capital said the stock market experienced a day of volatility, starting off strong with positive sentiment and increased activity in the morning. However, by midday, a wave of profit taking caused the market to dip towards negative territory. Despite this, the market managed to recover by the close of the day. Amidst the increased participation from retail and HNW investors, ASPI closed the day in green.

The most significant contributors towards the positive index were MELS, HNB, HHL, COMB, and SAMP. Additionally, specific stocks in the Construction and Banking sectors, such as SIRA, AEL, and SAMP, continued to attract investor interest throughout the day. This was driven by positive expectations surrounding their upcoming quarterly results and dividend announcements. Amidst multiple off-board transactions, turnover marked a 4.7% decrease from the monthly average, where the Banking sector led turnover at 30%, followed by Diversified Financials and Capital Goods jointly contributing 38% of overall turnover. There was a net foreign outflow of Rs. 93 million.

NDB Securities said high net worth and institutional investor participation was noted in Commercial Bank, Sierra Cables and LOLC Holdings. Mixed interest was observed in Sampath Bank, Hatton National Bank and John Keells Holdings whilst retail interest was noted in Industrial Asphalts, Kotagala Plantations and Waskaduwa Beach Resort.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank and Commercial Bank) whilst the sector index gained 1.25%. The share price of Sampath Bank gained by one Rupee to Rs. 124.50. The share price of Commercial Bank moved up by Rs. 2 to Rs. 151.75.

The Capital Goods sector was the second highest contributor to the market turnover (due to Sierra Cables) whilst the sector index decreased by 0.97%. The share price of Sierra Cables increased by 40 cents to Rs. 18.20.

Lanka IOC and LOLC Holdings were also included amongst the top turnover contributors. The share price of Lanka IOC recorded a gain of 50 cents to Rs. 135. The share price of LOLC Holdings declined by Rs. 4 to Rs. 690.

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