Colombo stock market kicks off new week positively

The Colombo stock market began the new week with bullish sentiments with healthy turnover though foreigners remained net sellers. 

Acuity Stockbrokers said the bourse ended on a positive note as the ASPI increased by 0.06% or 3.41 points to close at 5,385.79 points, while the S&P SL20 Index also increased by 0.20% or 4.80 points to close at 2,398.98.

Turnover decreased by 14.2% relative to last Friday to amount to Rs. 1.57 billion while the turnover of JKH accounted for 23.1% of the total day’s turnover. 

Foreign investors meanwhile recorded a net outflow of Rs. 0.16 billion over the day compared to a net outflow of Rs. 0.07 billion recorded last Friday.

First Capital said retail bulls held a tight grip as bourse recorded a five-and-a-half month high sustaining the drive on the positive course for the fifth consecutive session. 

“Index experienced a sideways volatile movement during the early hours of trading, thereafter recorded a drop during mid-day as it hit its intraday low of 5,378. Later market bounced back and closed at 5,386 gaining 3 points,” First Capital said. 

Turnover was dominated by the Banking and Capital Goods counters contributing 57% while being led by JKH. Market recorded moderate foreign participation dominated by the selling-side resulting in a net outflow.

NDB Securities said the ASPI edged up as a result of price gains in counters such as Distilleries, Nestle Lanka and People’s Leasing & Finance. 

High net worth and institutional investor participation was noted in DFCC Bank and John Keells Holdings. Mixed interest was observed in Lanka Milk Foods, LOLC Holdings and Commercial Bank, whilst retail interest was noted in Tokyo Cement Company non-voting and Hayleys Fabric. 

Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

The Banking sector was the top contributor to the market turnover (due to DFCC Bank and Commercial Bank) whilst the sector index gained 0.50%. The share price of DFCC Bank gained Rs. 0.20 (0.29%) to close at Rs. 68.30 while the share price of Commercial Bank appreciated by Rs. 0.50 (0.60%) to close at Rs. 83.60.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.15%. The share price of John Keells Holdings decreased by Rs. 0.40 (0.30%) to close at Rs. 134.50.

Lanka Milk Foods and LOLC Holdings were also included amongst the top turnover contributors. The share price of Lanka Milk Foods moved up by Rs. 2.30 (2.77%) closing at Rs. 85.30 whilst foreign holdings decreased by 1,307,696 shares. The share price of LOLC Holdings recorded a loss of Rs. 2.00 (1.25%) to close at Rs. 157.80.

Renuka Foods announced their first and final dividends of Rs. 0.35 per share while Chemanex announced their final dividend of Rs. 2.00 per share.