CSE sustains positive run fuelled by growing interests on banking stocks

The Colombo stock market managed to sustain the positive run albeit at a lesser rate whilst investors remained active boosting turnover.

The benchmark ASPI gained by 0.6% and the active S&P SL20 by 0.18%. Turnover was Rs. 3.16 billion involving 131.2 million shares. Market also saw a return of net foreign buying. 

Asia Securities said the market saw a strong comeback after an initial setback with banks leading the charge as investors accumulated positions on the back of positive industry sentiment. The ASPI declined to an intra-day low of 10,659 (-69 points) in early trading due to price losses recorded by LIOC (-2.8%), SCAP (-3.6%), LOLC (-2.1%), RCL (-1.2%), LOFC (-1.7%), EXPO (-2.2%), SLTL (-1.9%), and ACL (-1.6%). 

Nevertheless, the index reversed course subsequently and hovered around the 10,750 largely due to price gains in NTBN (+4.2%), COMBN (+2.6%), COMBX (+2.0%), DFCC (+8.3%), HNBN (+3.2%), PABC (+3.3%), SEYBN (+2.4%), and NDB (+3.0%). However, the ASPI ended on a high note with a late surge to 10,796 (+68 points). Excluding banks, CALT (+7.2%), FCT (+5.8%), CFVF (+3.8%), TJL (+4.6%), DIPD (+2.3%), HHL (+3.1%), HASU (+3.3%), and DIST (+2.3%) recorded significant price gains, providing further momentum to the ASPI during the session. 

COMBN (+17 points) provided the biggest boost to the ASPI, followed by HNBN (+16 points), CINS (+16 points), and DFCC (+13 points). Overall, 98 stocks recorded price gains during the session while 110 settled with losses.

Investor activity remained steady with market turnover reaching Rs. 3.1 billion, led by NTBN (Rs. 454 million), CALT (Rs. 173 million), and DFCC (Rs. 145 million). 

Asia also said foreigners recorded a net inflow of Rs. 99.5 million. Net foreign buying topped in NTB.N at Rs. 42.5 million and selling topped in CINS.X at Rs. 5.5 million. 

First Capital said the market witnessed mixed activity during the day, as slight selling pressure mounted during the morning session with the index being largely on a sideways trend. 

However, during the latter part of the session, buying interest returned on the banking, insurance and treasury counters which pushed up the market to close in the green zone at 10,796, gaining 68 points. 

Interest on the banking and treasury sector shares rose on the back of revitalised investor interest, following a period of profit-taking during the past two sessions. Furthermore, profit-taking continued on small and mid-cap shares during today’s session. 

NDB Securities said high net worth and institutional investor participation was

noted in Nations Trust Bank, Dankotuwa Porcelain, Aitken Spence Hotel Holdings, and Richard Pieris & Company.

Mixed interest was observed in Capital Alliance, DFCC Bank and Teejay Lanka whilst retail interest was noted in SMB Leasing voting and nonvoting, Browns Investments and Softlogic Capital. 

The Banking sector was the top contributor to the market turnover (due to Nations Trust Bank, DFCC Bank and Commercial Bank) whilst the sector index gained 2.67%. The share price of Nations Trust Bank increased by Rs. 3.60

(4.25%) to Rs. 88.40. The share price of DFCC Bank moved up by Rs. 4.90 to Rs. 63.90. The share price of Commercial Bank appreciated by Rs. 2.20 to Rs. 86.70.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Capital Alliance) whilst the sector index increased by 0.58%. The share price of Capital Alliance gained Rs. 3.50 to Rs. 52.

Teejay Lanka was also included among the top turnover contributors. The share price of Teejay Lanka recorded a gain of Rs. 1.50 to Rs. 34.