CSE struggles to close on the up after erratic day for indices

Thursday, 7 December 2023 01:42 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday struggled to close on the up amidst lacklustre investor interest.

In a rocky session for the indices, the benchmark ASPI finished the day with a gain of 3 points and the active S&P SL20 rose by 2 points.

Turnover was Rs. 700 million involving 29.3 million shares. On a positive note CSE saw net foreign inflow.

Asia Securities said the ASPI began the session on a positive note, reaching 10,732 (+32 points) in early trading but later reversed its course in the second half of the session, mainly influenced by price declines in LMF (-1.1%), RCL (-1.5%), SCAP (-2.5%), CFVF (-1.6%), and PABC (-1.6%). Overall, 74 stocks ended in green while 89 settled with losses.

Market turnover remained moderate led by JKH (Rs. 140 million) and WIND (Rs. 106) which saw notable off-board transactions during the session.

Foreigners ended on the buying side for a second session, generating a net inflow of Rs. 124 million, led by JKH (Rs. 126 million). First Capital said the bourse commenced its activities on a dull note continued by a volatile streak of trading yet attained to rebound into positive territory closing at 10,703 gaining 3 points asserting light investor confidence.

The Food, beverage and staples sector counters namely CTHR and MELS witnessed revitalised interest during the day as it backed the index exceptionally well to land on the green. Furthermore, today’s XD date on CTHR for Rs. 3.5/share also contributed towards the active investor participation during the trading session. Notably, WIND recorded an off-board transaction resulting in a 0.4% stake change totalling up to 5 million shares which largely contributed the turnover alongside improved interest on Banking sector shares and blue chip companies as they also contributed to the turnover. On a positive note, foreign investors remained net buyers recording an inflow of Rs. 124 million topped by JKH and selected Banking sector shares.

NDB Securities said high net worth and institutional investor participation was noted in Windforce, John Keells Holdings and Union Assurance. Mixed interest was observed in Expolanka Holdings, Sampath Bank and The Colombo Fort Land & Building whilst retail interest was noted in SMB Leasing, Amana Bank and LOLC Finance.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 0.20%. The share price of John Keells Holdings decreased by 75 cents to Rs. 192.25.

The Utilities sector was the second highest contributor to the market turnover (due to Windforce) whilst the sector index increased by 0.13%. The share price of Windforce gained 10 cents to Rs. 19.10.

Expolanka Holdings, Union Assurance and Sampath Bank were also included amongst the top turnover contributors.

The share price of Expolanka Holdings moved up by Rs. 1.25 to Rs. 132.

The share price of Union Assurance closed flat at Rs. 38. The share price of Sampath bank too closed flat at Rs. 71.