Colombo stock market’s struggle persists

The Colombo stock market’s struggle persists with low turnover and mixed investor sentiments though the benchmark index ASPI managed to gain marginally.

Turnover was Rs. 1.3 billion involving 72 million shares. ASPI gained by 13 points or 0.1% but the active S&P SL20 shed four points or by 0.17%.

Asia Securities said after four sessions of price losses, the ASPI ended marginally higher on Tuesday as front-line stocks showcased a mixed performance amid moderate investor activity. 

Following Tuesday’s subdued session, SCAP (+5.7%) and AAIC (+7.3) resumed their upward trend while price losses in LIOC (-3.3%), LOFC (-1.4%), CFVF (-3.8%), and BOGA (-7.3%) dented trading momentum during the session. The ASPI reached an intra-day high of 8,409 (+41 points) in early trading, however pared gains in the last hour to end at 8,381 (+13 points). 

Turnover was led by SCAP (Rs. 354 million) and AAIC (Rs. 147 million). The breadth of the market closed positive with 98 stocks recording price gains and 79 settling with losses for the day. Asia also said foreigners recorded a net outflow of Rs. 12.2 million. Net foreign buying  topped in BOPL at Rs. 3.3 million and selling topped in LOFC at Rs. 15.2 million.

First Capital said the bourse edged up after four days of being in the red zone as investor confidence slightly improved over the expectation of an economic recovery from 2H2023, as stated by the CBSL in the policy report for 2023. It is also noted that inflation is expected to gradually decelerate in the 1H2023 and is likely to reach the desired level towards the end of 2023. 

The index moved up reaching an intraday high of 8,410 during the mid-day, supported by Treasury counters as investors expect interest rates to moderate in the near future. Although investor activities slowed down during the second half of the session, the market managed to close the day on a positive note at 8,381, gaining 13 points. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Windforce Ltd., Melstacorp and Hatton National Bank.

It said high net worth and institutional investor participation was noted in CIC Holdings. Mixed interest was observed in Softlogic Life Insurance, Capital Alliance and Lanka IOC whilst retail interest was noted in Softlogic Capital, LOLC Finance and Browns Investments. 

The Insurance sector was the top contributor to the market turnover (due to Softlogic Life Insurance) whilst the sector index gained 0.86%. The share price of Softlogic Life Insurance gained Rs. 7.75 (7.33%) to close at Rs. 113.50. The Diversified Financials sector was the second highest contributor to the market turnover (due to Softlogic Capital and Capital Alliance) whilst the sector index increased by 0.17%. The share price of Softlogic Capital increased by 90 cents (5.73%) to close at Rs. 16.60. The share price of Capital Alliance moved up by 80 cents (2.75%) to close at Rs. 29.90.

CIC Holdings and Lanka IOC were also included amongst the top turnover contributors. The share price of CIC Holdings recorded a loss of 40 cents to close at Rs. 80.50. The share price of Lanka IOC declined by Rs. 6.25 (3.26%) to close at Rs. 185.25