Colombo stock market turnover improves; indices struggle

The Colombo stock market saw improvement in turnover though indices struggled due to mixed investor sentiment.

Asia Securities said the ASPI moved in the narrow range of 8,520 to 8,560 throughout the session on as price gains in SCAP (+7.5%), LIOC (+3.6%), CALT (+23.6%), COMB (+3.2%), and JKH (+1.7%) were offset by the losses recorded by CINS (-6.6%), HNB (-2.5%), EXPO (-1.2%), SLTL (-3.8%), and RCL (-2.8%). 

Turnover reached a two-week high at Rs. 2.5 billion (previous session Rs. 1.9 billion). SCAP (Rs. 605 million) generated the highest turnover for the day, followed by LIOC (Rs. 460 million), and AAIC (Rs. 309 million). COMB (+13 points), LIOC (+9 points), and MELS (+7 points) ended as the index movers during the session while CINS (-22 points), HNB (-5 points), and EXPO (-5 points) were the major laggards on the ASPI. The breadth of the market was neutral with 85 price gainers and 90 decliners. 

Asia also said foreigners recorded a net outflow of Rs. 35.8 million. Net foreign buying topped in MELS at Rs. 7.7 million and selling topped in JKH at Rs. 52 million.

First Capital said the bourse closed flat as investor’s demonstrated mixed interest throughout the day. Life Insurance and Treasury related counters witnessed active investor participation with CBSL signalling easing of interest rates. 

Moreover, CBSL has amended operating instruction on OMO which further indicates a possible easing of interest rates as demand for T-Bills may rise. With active investor interest, index scaled high during the first half of the session. 

However, following the continuous escalation in share prices of companies such as CINS and AAIC over the last few days, investors resorted to book profits while selling pressure weighed down on ASPI with the market closing flat at 8,512 gaining 2 points. 

NDB Securities said the ASPI edged up as a result of price gains in counters such as Commercial Bank, Lanka IOC and Melstacorp.

It said high net worth and institutional investor participation was noted in John Keells Holdings and Lanka IOC. Mixed interest was observed in Softlogic Capital, Softlogic Life Insurance and Capital Alliance whilst retail interest was noted in SMB Leasing nonvoting, Browns Investments and Ambeon Capital. 

The Insurance sector was the top contributor to the market turnover (due to Softlogic Life Insurance) whilst the sector index lost 2.29%. The share price of Softlogic Life Insurance moved up by Rs. 1.60 (1.69%) to close at Rs. 96.50.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Softlogic Capital, Capital Alliance and First Capital Treasuries) whilst the sector index increased by 0.14%. 

The share price of Softlogic Capital increased by 90 cents (7.50%) to close at Rs. 12.90. The share price of Capital Alliance recorded a gain of Rs. 5.10 (23.61%) to close at Rs. 26.70. The share price of First Capital Treasuries appreciated by Rs. 1.20 (4.76%) to close at Rs. 26.40.

Lanka IOC was also included amongst the top turnover contributors. The share price of Lanka IOC gained Rs. 7.25 (3.56%) to close at Rs. 210.75.