Colombo stock market struggles to stay up

The Colombo stock market yesterday struggled to stay up whilst turnover hit a new low.

The active S&P SL 20 index gained by over 22 points or 0.9% and the benchmark ADPI gained nearly 26 points or 0.3%. Turnover was Rs. 831 million involving 39 million shares.

Asia Securities said the indices snapped a four-day declining streak owing to a sharp intra-day recovery, led by heavyweights JKH (+2.3%), TKYO (+20.8%), CARG (+5.9%), HHL (+4.6%), RCL (+2.4%) and EXPO (+1.0%). However, turnover dropped due to subdued retail and HNI buying.

Earlier, the ASPI declined to a low of 8,201 (-67 points) and regained around 116 points to reach 8,317 in the second half of the session. Eventually, the index settled at 8,294 with a gain of 26 points (+0.3%) while the S&P SL20 index outperformed the ASPI rising 0.9% to end at 2,542. Overall, 79 stocks ended in green while 92 counters recorded price losses during the session.

Asia also said foreigners recorded a net inflow of Rs. 59.8 million with net selling topping in JKH at Rs. 40.5 million and SAMP.N. seeing most selling at Rs. 1.5 million.

First Capital said the Bourse displayed a gradual shift to green after four consecutive days of losses as the selling spree slowed down amidst thin volumes while investor activity renewed on JKH following the news on the initiation of construction work to jointly develop the West Container Terminal (WCT) in Colombo.

The Index plunged steeply during the first one hour of trading but slowly recovered and managed to recover previous day losses with a major contribution stemming from the Materials and Diversified sector as the index closed at 8,294 gaining 26 points.

Turnover continued to edge lower and recorded at Rs. 831.3 million (about 49% lower than the monthly average turnover of Rs. 1.6 billion) led by a joint contribution of 41% from the Capital Goods sector and Food, Beverage & Tobacco sector. Meanwhile RCH saw 2.5% of stake changing hands through an off-board transaction at Rs. 69 per share.

NDB Securities said High net worth and institutional investor participation was noted in Renuka Hotels and Expolanka Holdings. Mixed interest was observed in John Keells Holdings, Lanka IOC and Tokyo Cement Company nonvoting whilst retail interest was noted in Industrial Asphalts, Browns Investments and LOLC Finance.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 1.44%. The share price of John Keells Holdings increased by Rs 3 (2.26%) to close at Rs 135.50.

Food, Beverage & Tobacco sector was the second highest contributor to the market turnover whilst the sector index decreased by 0.54%.

Expolanka Holdings, Renuka Hotels Limited, Lanka IOC and Tokyo Cement Company nonvoting were also included among the top turnover contributors. The share price of Expolanka Holdings gained Rs 1.50 (0.98%) to close at Rs 155. The share price of Renuka Hotels Limited moved down by 60 cents to close at Rs 68.40. The share price of Lanka IOC recorded a gain of One Rupee to close at Rs 171.25. The share price of Tokyo Cement Company nonvoting appreciated by Rs 2.30 (8.71%) to close at Rs 28.70.

Separately Cargills and C T Holdings announced their interim dividends of Rs 3.50 and Rs 2.45 per share respectively.