Colombo stock market struggles to stay positive

The Colombo stock market yesterday struggled its way to close on the up amidst below average turnover. 

On a choppy day, the All Share Price Index closed with a gain of 23 points or 0.3% but the more active S&PSL20 finished negative with 3 points down. Turnover was Rs. 1.7 billion involving 68 million shares.

First Capital said the bourse concluded the day on a positive footing, one day after it witnessed a pullback caused by the fuel price turmoil. 

“Index significantly fluctuated during the first half of the trading session and later witnessed a gradual upward trend with modest volatility,” First Capital added.

It said turnover was driven by gains in the Diversified Financials sector, followed by the Capital Goods sector accounting for a joint contribution of 50%. 

Asia Securities said the ASPI followed a wave pattern in the first half of the session before staging a sharp upward movement to close marginally higher. Counters such as LOLC, MELS and BIL witnessed price gains and supported market rebound. 

“Activity remained at moderate levels, driven HNI and retail investors while turnover topped in LOLC,” Asia said adding Diversified Financials, Capital Goods, Food, Beverage and Tobacco and Transportation sectors led activity, collectively accounting for 77.0% of turnover. 

It said foreigners recorded a net outflow of Rs. 1.9 million while their participation declined to 2.4% of turnover (previous day 5.5%). Estimated net foreign buying topped in CSD.N at Rs. 9 million and net foreign selling topped in LOLC.N at Rs. 11.8 million. NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Holdings, LOLC Development Finance and Melstacorp.

It said high net worth and institutional investor participation remained subdued for the day. Mixed interest was observed in LOLC Holdings, Melstacorp and Expolanka Holdings, whilst retail interest was noted in Browns Investments, SMB Leasing and LOLC Finance. Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

Diversified Financials sector was the top contributor to the market turnover (due to LOLC Holdings), whilst the sector index gained 2.59%. The share price of LOLC Holdings increased by Rs. 14.75 (3.82%) closing at Rs. 401.00 whilst foreign holdings decreased by 29,543 shares.

Capital Goods sector was the second highest contributor to the market turnover, whilst the sector index decreased by 0.37%.

Expolanka Holdings, Melstacorp, Browns Investments and Windforce Limited were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 0.60 (1.26%) to close at Rs. 48.10. The share price of Melstacorp moved up by Rs. 1.90 (3.85%) to close at Rs. 51.20. The share price of Browns Investments recorded a gain of Rs. 0.10 (1.61%) to close at Rs. 6.30. The share price of Windforce Ltd appreciated by Rs. 0.10 (0.53%) to close at Rs. 19.00.