CSE stays on the up despite low turnover

The Colombo stock market remained on the up yesterday following the cut in policy rates though investor activity was low judging by value and volume of trading.

The active S&P SL20 gained by 1.33% and the benchmark ASPI by 0.9%. Turnover was Rs. 591 million involving 20.3 million shares.

First Capital said the broader market extended its gains from Tuesday as the Banking sector counters and holding companies exerted a positive pressure on the index, whilst majority of the sectors witnessed price gains across the board following the CBSLs policy rates cut by 25bps. As a result, the ASPI halted the day in green at 11,702 gaining over 100 points for the second consecutive day, rebounding from the price declines observed during the past few weeks.  HNB, COMB, JKH, NDB and LOLC emerged as the major positive contributors to the index.

Despite subdued participation of the HNWIs and retail investors, turnover improved slightly from Tuesday. However, this marked a 52.0% decrease from the month’s average. The Banking sector led the turnover with 25%, followed by the Capital Goods and Diversified Financials sectors jointly contributing 39% to the overall turnover.

Foreign investors remained net sellers, with a net foreign outflow of Rs. 28.8 million.

NDB Securities said high net worth and institutional investor participation were noted in Hatton National Bank voting, Teejay Lanka and John Keells Holdings. Mixed interest was observed in Access Engineering, Commercial Credit and Finance rights and Hatton National Bank nonvoting whilst retail interest was noted in Browns Investments, LOLC Finance and Softlogic Holdings.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank voting, Hatton National Bank nonvoting and National Development Bank) whilst the sector index gained 1.59%. The share price of Hatton National Bank gained Rs. 3.25 to Rs. 191.25. The share price of Hatton National Bank nonvoting recorded a gain of one rupee to Rs. 149.75. The share price of the National Development Bank appreciated by Rs. 2 to Rs. 73.

The capital Goods sector was the second highest contributor to the market turnover (due to Access Engineering) whilst the sector index increased by 1.14%. The share price of Access Engineering increased by 10 cents to Rs. 22.40.

Commercial Credit & Finance was also included amongst the top turnover contributors with its share price gaining by Rs. 1.30 to Rs. 39.30