CSE sustains upward momentum for seventh consecutive day

The Colombo stock market yesterday completed seventh consecutive day of gains thanks to investors sustaining their positive momentum though there were signs of losing it.

The benchmark ASPI gained by 0.45% and the active S&P SL20 by 0.2%. Turnover was Rs. 1.4 billion, below Rs. 1.9 billion on Monday, and involved 91.5 million. Foreigners remain net sellers with the year to date figure being above Rs. 5 billion.

Asia Securities said after a subdued opening, the indices saw a turnaround in the second half of the session supported by price gains in front-line stocks LOFC (+3.5%), PABC (+2.6%), SAMP (+1.5%), and AAIC (+4.3%). Notably, active accumulation was seen in WATA (+2.7%), HELA (+3.9%), KOTA (+4.8%), CCS (+3.5%), PACK (+5.6%), SPEN (+6.3%), and LALU (+7.2%). On the flip side, BIL (-1.8%), HAYL (-1.0%), and SLTL (-2.7%) consolidated during the session.

The ASPI kicked off the session on a tepid note, ranging between 11,110 and 11,130 in the first half. However, the index gained momentum subsequently, trending towards the 11,200 mark. Eventually, the ASPI closed out the session at 11,175 (+50 points). SPEN (+15 points) came in as the top contributor to the ASPI, followed by SAMP (+9 points) and CTC (+8 points). The breadth of the market continued strong with 123 price gainers and 59 decliners.

Turnover was led by LOFC (Rs. 89 million), BIL (Rs. 82 million), and LMF (Rs. 74 million).

Foreigners recorded a net outflow of Rs. 28 million. Net foreign buying topped in HAYC at Rs. 13.8 million and selling topped in HHL at Rs. 41.9 million.

First Capital said the Bourse continued its bullish trend for the seventh consecutive session, buoyed by a resurgence in overall market sentiment that instilled confidence among retailers.

Despite an initial downturn due to selling pressure from UAL and CTC shares reaching their ex-dividend date today, the market immediately rebounded. The index experienced a notable turnaround, as bullish sentiment surged, driven by investor interest in selected banking counters such as SAMP, PABC and HNB and the Food and Beverages sectors.

The positive optimism on the overall market propelled the index to sustain its upward trajectory, closing for the day at 11,175, with a gain of 50 points.

Although the retail participation slightly remained lower compared to the previous day, turnover remained above Rs. 1 billion mark driven by high net worth and institutional investors’ participation through off-board transactions, contributing 7% to the market turnover. Food, Beverage & Tobacco and Diversified Financials sectors jointly contributed 42%. Meanwhile, HELA witnessed a stake change of 0.4% through an off-board transaction totalling to 5 million shares at Rs. 5.30 each.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, Hemas Holdings and Hela Apparel Holdings. Mixed interest was observed in LOLC Finance, Browns Investments and Lanka Milk Foods whilst retail interest was noted in Kotagala Plantations, Marawila Resorts and Lanka Credit and Business Finance.

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Browns Investments and Lanka Milk Foods) whilst the sector index gained 0.31%. The share price of Browns Investments lost 10 cents to Rs. 5.60. The share price of Lanka Milk Foods moved up by 40 cents to Rs. 27.80.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Finance) whilst the sector index increased by 0.53%. The share price of LOLC Finance increased by 20 cents to Rs. 5.90.

Hatton National Bank and Pan Asia Banking Corporation were also included amongst the top turnover contributors. The share price of Hatton National Bank recorded a gain of 25 cents to Rs. 160.

The share price of Pan Asia Banking Corporation appreciated by 50 cents to Rs. 20.10.