Colombo stock market struggles towards positive territory

The Colombo stock market struggled its way to close on the up though marginally as investor activity levels remained subdued. 

The S&P SL20 gained 0.6% and the ASPI by 0.7%. Turnover was only Rs. 778.6 million involving 34.6 million shares.

Asia Securities said the indices staged a modest recovery supported by price gains in SFCL (+23.1%), EXPO (+3.2%), BIL (+2.7%), MELS (+1.9%), and ASIR (+5.3%). 

Turnover was led by LIOC (Rs. 200 million), EXPO (Rs. 149 million), and HNB (Rs. 61 million). Earlier, the ASPI opened trading with a 60-point gap-up at 7,373 and moved within a range of 7,350-7,375 before touching an intra-day high of 7,388 (+75 points) during the closing bell. The ASPI eventually wrapped the session at 7,366 (+53 points) and the S&P SL20 index ended at 2,350 (+14 points). Overall, 104 stocks recorded price gains during the session while 59 ended with losses.

Asia also said foreigners recorded a net inflow of Rs. 35 million while their participation increased to 3.3% of turnover (previous day 2.1%). Net foreign buying topped in VFIN at Rs. 25 million and selling topped in HAYC at Rs. 5.8 million. 

First Capital said Bourse bounced back and recorded a gain after -4% dip over the previous two sessions as investors hunted down fundamentally strong counters looking to make a quick buck. Index started off on a solid footing and maintained its steady upward trajectory throughout the session and hit an intraday high of 7,389 before closing the day at 7,366, gaining 53 points. 

Despite a gain, turnover declined by 4% as investors chose to stay sidelined seeking more clarity on the fuel front. Moreover, off-board transactions on CARE, AEL and LIOC contributed 26% to the day’s lacklustre turnover. Contributed by LIOC and EXPO, Energy and Transportation sectors collectively accounted for 45% of the day’s turnover. 

NDB Securities said high net worth and institutional investor participation was noted in Lanka IOC, Printcare and Access Engineering. Mixed interest was observed in Expolanka Holdings, Hatton National Bank and Vallibel Finance whilst retail interest was noted in Browns Investments, Industrial Asphalts and LOLC Finance.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank) whilst the sector index lost 1.59%. The share price of Hatton National Bank moved down by 10 cents to close at Rs. 78.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index decreased by 4.23%. The share price of Expolanka Holdings gained Rs. 5.50 (3.24%) to close at Rs. 175.25.

Lanka IOC, Printcare and Browns Investments were also included amongst the top turnover contributors. The share price of Lanka IOC increased by Rs. 1.60 (2.35%) to close at Rs. 69.70. The share price of Printcare recorded a gain of 40 cents (1.33%) to close at Rs. 30.40. The share price of Browns Investments appreciated by 20 cents (2.74%) to close at Rs. 7.50.