CSE struggles its way to close on the up

The Colombo stock market struggled its way to positive territory yesterday amidst low overall activity levels.

The benchmark ASPI gained by over 22 points and the active S&P SL20 by three points. Turnover was Rs. 1.5 billion involving 83 million shares.

Asia Securities said snapping a three-day declining streak, the indices edged higher supported by RICH (+2.3%), SAMP (+1.1%), and RCL (+2.4%). Turnover remained at Rs. 1 billion levels for the third consecutive session as investors stayed on the sidelines maintaining a cautious approach ahead of the budget reading.

Earlier, the indices saw a strong opening to the session with the ASPI hitting an intra-day high of 8,987 (+121 points) in the first hour of trading. Following this, the index reversed course as selling pressure emerged in the market led by EXPO (-1.1%), AGST (-3.9%), CICX (-2.7%), and HHL (-2.5%). The ASPI pared most of its early gains to close at 8,888 (+22 points) while the S&P SL20 index ended at 2,677 (+3 points).

Foreigners ended as net buyers with a net inflow of Rs. 53 million on the back of buying in CICN (Rs.  48 million). The breadth of the market ended positive with 103 stocks recording price gains during the session and 82 closing lower.

First Capital said after three consecutive days of losses, ASPI reverted to green despite recording the lowest turnover in seven weeks. 

The ASPI opened the day higher and moved up for the first 30 minutes into trading, however, lost steam afterwards on the back of profit-taking. Eventually, with the slight recovery witnessed, the market closed the day at 8,888, gaining 22 points. 

A notable recovery was witnessed in the Plantation sector following the removal of import ban on fertiliser. Materials sector contributed 37% to the turnover and continued to dominate the market turnover for the fourth straight day.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Vallibel One, Richard Pieris & Company and Sampath Bank.

It said high net worth and institutional investor participation was noted in CIC Holdings nonvoting, Lanka IOC and Lanka Walltiles. Mixed interest was observed in Agstar, CIC Holdings and Hayleys whilst retail interest was noted in SMB Leasing nonvoting, Browns Investments and Sarvodaya Development Finance.

Materials sector was the top contributor to the market turnover (due to Agstar and CIC Holdings nonvoting) whilst the sector index lost 0.22%. The share price of Agstar decreased by 80 cents (3.94%) to close at Rs. 19.50. The share price of CIC Holdings nonvoting lost Rs. 2 (2.71%) to close at Rs. 71.70.

The Capital Goods sector was the second highest contributor to the market turnover (due to Lanka Walltiles) whilst the sector index increased by 0.52%. The share price of Lanka Walltiles moved up by 80 cents (1.14%) to close at Rs. 70.90.

Lanka IOC and Sarvodaya Development Finance were also included amongst the top turnover contributors. The share price of Lanka IOC closed flat at Rs. 216. The share price of Sarvodaya Development Finance appreciated by 30 cents (2.68%) to close at Rs. 11.50.