CSE sustains modest gains with low turnover

The Colombo stock market sustained its positive run though gaining modestly amidst low turnover.

The S&P SL20 Index gained by 0.38% and the ASPI inched up by 0.13%. Turnover amounted to Rs. 690.4 million involving 37.5 million shares.

Asia Securities said the market witnessed another subdued session as retail and HNI investors remained risk-averse due to weak domestic cues. Following a positive start to the session, the ASPI reached an intra-day high of 7,578 (+76 points), however the index pared gains and declined to 7,499 (-3 points) due to price losses in front-line stocks DIAL (-11.9%), LIOC (-1.9%), SCAP (-3.3%), and AEL (-3.0%).

Following this, the index saw a late-recovery and closed out the session marginally higher at 7,512 (+10 points), supported by price gains in EXPO (+2.4%), RCL (+3.1%), VONE (+3.5%), and JKH (+2.7%). Turnover stood at Rs. 690 million (previous session Rs. 761 million) led by EXPO (Rs. 200 million), BIL (Rs. 78 million), and RCL (Rs. 76 million). The breadth of the market closed almost neutral with 74 price gainers and 82 decliners.

Asia also said foreigners recorded a net inflow of Rs. 0.2 million while their participation was flat at 1.6% of turnover (previous day 3.3%). Net foreign buying topped in REG at Rs. 4.7 million and selling topped in RICH at Rs. 4.2 million.

First Capital said the bourse continued its upward trajectory and closed the day with a marginal gain as investor sentiment improved with the confirmation of $ 70 million from the World Bank to import 100,000 MT of gas stocks.

With that, the index spiked by over 70 points within the first 30 minutes of the session yet failed to sustain the level as investor confidence was shaken with the announcement of Sri Lanka’s headline inflation for May, which was up 45.3%YoY.

Turnover for the day was a two-month low whilst the Transportation sector dominated value, followed by the Capital Goods sector, which jointly contributed 55.7% to the total.

NDB Securities said high net worth and institutional investor participation was noted in Lanka IOC and Richard Pieris & Company. Mixed interest was observed in Expolanka Holdings, Royal Ceramics and Vallibel One whilst retail interest was noted in Browns Investments, SMB Leasing and LOLC Finance.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 2.37%. The share price of Expolanka Holdings increased by Rs. 4 (2.38%) to close at Rs. 172.25.

The Capital Goods sector was the second-highest contributor to the market turnover (due to Royal Ceramics and Vallibel One) whilst the sector index increased by 1.98%. The share price of Royal Ceramics moved up by 80 cents (3.05%) to close at Rs. 27.00. The share price of Vallibel One recorded a gain of Rs. 1.20 (3.53%) to close at Rs. 35.20.

Browns Investments and Lanka IOC were also included among the top turnover contributors. The share price of Browns Investments closed flat at Rs. 8. The share price of Lanka IOC declined by Rs. 1.30 (1.91%) to close at Rs. 66.90.