Colombo stock market regains marginally amidst low investor activity

The Colombo stock market managed to close on the up yesterday though marginally following the sharp plunge on Monday.

Both indices gained by over 0.3% whilst turnover was Rs. 582 million involving 24 million shares. 

Asia Securities said following Monday’s sharp decline, the indices witnessed a brief respite with the ASPI gaining 42 points (+0.4%) supported by heavyweight and banking sector counters. The ASPI initially touched a high of 11,330 (+78 points) in the first half of the session before consolidating in the range of 11,280-11,330. Price gains in RICH (+3.7%), SUN (+2.6%), VONE (+2.1%), BIL (+2.0%), and DIPD (+1.5%) supported the ASPI during the session. NDB (+1.0%), HNBN (+1.0%), DFCC and (+0.9%) also contributed to the ASPI. 

RICH (+6 points), HNB (+5 points), and JKH (+4 points) ended as the major drivers of the ASPI while LION (-3 points), LHCL (-2 points), and LOLC (-2 points) were the biggest laggards. The market breadth was positive with 92 price decliners and 56 gainers. Turnover was led by JKH (Rs. 161 million).

Foreigners recorded a net outflow of Rs. 20.6 million. Net foreign buying topped in CCS.N at Rs. 15.9 million and selling topped in JKH at Rs. 28.7 million.

First Capital said the Broader Market recovered from Monday’s decline yet faced another day of dull trading as investor participation remained limited. The Bourse reached an intraday high of 11,330 gaining over 70 points in the initial trading hours, however largely enticed a bit of selling and moved sideways during the rest of the trading session. The ASPI closed the day at 11,294, gaining 42 points (0.4%) while investor interests were centred on JKH, VONE, and NTB during the day. Meanwhile, RICH, HNB, JKH, BIL and HAYL emerged as the top positive contributors while a significant number of shares were traded in COMB due to the final day for renouncing rights shares. The Capital Goods sector contributed 42% to the turnover, followed by the Banking and Food, Beverage and Tobacco sectors jointly contributing 31% to the overall turnover. 

NDB Securities said high net worth and institutional investor participation was noted in Nations Trust Bank, Central Finance Company and Sunshine Holdings. Mixed interest was observed in John Keells Holdings, Vallibel One and Commercial Bank voting whilst retail interest was noted in Browns Investments, Commercial Bank rights and Industrial Asphalts. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Vallibel One) whilst the sector index gained 0.93%. The share price of John Keells Holdings increased by Rs. 1.50 to Rs. 179.50. The share price of Vallibel One gained 90 cents to Rs.

43.60.

The Goods, Beverage & Tobacco sector was the second highest contributor to the market turnover whilst the sector index increased by 0.18%. Nations Trust Bank, Commercial Bank and Central Finance Company were also included amongst the top turnover contributors. The share price of Nations Trust Bank closed flat at Rs. 120. The share price of Commercial Bank closed flat at Rs. 89.40. The share price of Central Finance Company closed flat at Rs. 105.25.