CSE sustains new found optimism

The Colombo stock market sustained its new found optimism with both indices gaining considerably amidst improved turnovers. 

The active S&P SL20 rose by 1.6% and the benchmark ASPI by 1%. Turnover was Rs. 1.56 billion involving 49.2 million shares.

Asia Securities said continuing its upward momentum for a third session, the market turned buoyant mainly due to sharp price increases in leading banking counters. The ASPI crossed the 12,300 levels to close at 12,311 up 121 points. The banking sector index gained 2.0% led by NTB (+5.7%), SAMP (+2.2%), NDB (+2.2%), PABC (+1.7%), COMB (+1.9%) and DFCC (+1.6%) as investors returned to banking counters after a period of consolidation. Additionally, LOLC (+1.9%), AEL (+1.7%) and DIPD (+2.3%) supported the ASPI’s upward movement during the session. 

SAMP (+12 points), COMB (+12 points), and CTC (+9 points) ended as the top contributors to the ASPI. The market breadth was positive with 132 stocks closing in green and 51 recording losses.

Turnover was led by HNB (Rs. 148 million), NTB (Rs. 119 million), and PABC (Rs. 105 million). Asia also said foreigners recorded a net outflow of Rs. 30.6 million. Net foreign buying topped in NTB.N at Rs. 17.9 million and selling topped in AAIC.N at Rs. 28.6 million.

First Capital said the broader market witnessed a bullish sentiment throughout the trading day closing both indices in green for the 3rd consecutive day. The ASPI surged to 12,311 gaining 121 points as investor confidence strengthened, lowering the need for higher risk premiums. The Banking sector counters, and blue-chip companies contributed to the index majorly where HNB, BREW, SAMP, COMB and LOLC emerged as the most significant contributors. Turnover surged by 25.4% compared to the previous day, totalling at Rs. 1.6 billion after 3 weeks, while the majority of the contribution came from retail investors. However, it dropped by 4.5% compared to the monthly average standing Rs. 1.6 billion. The Banking sector led the turnover at 42.4%, with the Capital Goods and Food, Beverage and Tobacco sectors jointly contributing 28.6% to the overall turnover. 

NDB Securities said high net worth and institutional investor participation was noted in Pan Asia Banking Corporation, Sampath Bank and Hatton National Bank. Mixed interest was observed in Nations Trust Bank, Hayleys and LOLC Holdings whilst retail interest was noted in Browns Investments, LOLC Finance and UB Finance Company rights. 

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Nations Trust Bank, Pan Asia Banking Corporation and Sampath Bank) whilst the sector index gained 2.02%. The share price of Hatton National Bank increased by Rs. 2.50 to Rs. 204.25. The share price of Nations Trust Bank gained Rs. 7 to Rs. 130. The share price of Pan Asia Banking Corporation moved up by 40 cents to Rs. 23.30. The share price of Sampath Bank recorded a gain of Rs. 1.70 to Rs. 80.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys) whilst the sector index increased by 1.05%. The share price of Hayleys appreciated by 40 cents to Rs. 95.