Colombo stock market manages to gain amidst dismal turnover

The Colombo stock market yesterday began a fresh week on the up continuing from where it ended on Friday though turnover was dismal.

The active S&P SL20 gained by 0.3% and the benchmark ASPI was almost flat. Turnover was Rs. 337.4 million involving 15 million shares.

First Capital said the broad market experienced thin trading volumes and limited trading activity with mixed participation from investors as uncertainties surrounding the upcoming Presidential election in the island nation influenced investors to maintain a cautious stance. This ongoing market volatility is also evident by the index’s 0.8% decline MTD, highlighting the prevailing cautious sentiment among investors.

However, the benchmark ASPI showed little movement during today, gaining only 9 points to close the day at 11,312 where COMB, MELS, LOLC, NDB and TKYO emerged as the top positive contributors to the index. Increased buying interest was observed in companies that delivered strong quarterly performance, while most of the tourism sector counters experienced heightened interest due to a rise in tourist arrivals.

Turnover marked a 60.3% decrease from the month’s average, further reflecting the lethargic sentiment in the market. The Banking sector contributed 18% to the turnover, followed by the Capital Goods and Food, Beverage and Tobacco sectors jointly contributing 31% to the overall turnover. Foreign investors turned net sellers, with a net outflow of Rs. 5.8 million.

NDB Securities said the ASPI edged up as a result of price gains in counters such as Commercial Bank, Melstacorp and LOLC Holdings.  

High net worth and institutional investor participation was noted in Kelani Tyres and Ceylinco Insurance. Mixed interest was observed in Access Engineering, Commercial Bank and John Keells Holdings whilst retail interest was noted in Beruwala Resorts, Marawila Resorts and Browns Investments. 

The Banking sector was the top contributor to the market turnover (due to Commercial Bank) whilst the sector index gained 0.69%. The share price of Commercial Bank recorded a gain of Rs. 2.40 to Rs. 91.40.

The Capital Goods sector was the second highest contributor to the market turnover (due to Access Engineering and John Keells Holdings) whilst the sector index decreased by 0.78%. The share price of Access Engineering closed flat at Rs 21.80. The share price of John Keells Holdings declined by Rs. 1.75 to Rs. 178.

Kelani Tyres and Ceylinco Insurance were also included amongst the top turnover contributors. The share price of Kelani Tyres closed flat at Rs. 75. The share price of Ceylinco Insurance edged up by one Rupee to Rs. 2,501.