Investor sentiment and indices turn erratic at CSE

The Colombo stock market yesterday closed marginally negative whilst indices and investor sentiment were erratic.

Turnover was Rs. 2 billion involving 118.7 million shares. 

Asia Securities said the indices stayed in red territory for a second session due to profit-taking activities in JKH (-0.7%), SAMP (-1.1%), HNBN (-1.4%), CALT (-2.0%), CCS (-1.4%), and CFIN (-1.2%). The ASPI touched a high of 12,407 (+31 points) in early trading before reversing course as investors continued to book profits in heavyweights and banking counters. The index touched an intra-day low of 12,354 (-22 points) in mid-day trading, however managed to regain ground towards the end of the session, eventually ending the day unchanged at 12,376. 

Price gains in SUN (+1.6%), COMBN (+1.1%), BIL (+1.5%), LOLC (+1.4%), and SCAP (+2.9%) supported the ASPI during its late-session recovery. Notably, manufacturing stocks MGT (+5.1%), TJL (+2.4%), PACK (+2.0%), and HELA (+11.3%) saw renewed interest from investors during the session. The breadth of the market was neutral with 94 price gainers and 92 decliners.

Turnover was led by JKH (Rs. 245mn), SUN (Rs. 125mn), RCL (Rs. 124mn), and BIL (Rs. 106mn). 

Foreigners recorded a net outflow of Rs. 44.9mn. Net foreign buying topped in JKH at Rs. 19.7mn and selling topped in NDB at Rs. 24.5mn.

First Capital said the bourse experienced a day of swinging activity with mixed sentiment and uncertainty overall. The ASPI closed at 12,376 remaining unchanged from the previous day and reflecting the volatile environment of the market, to which the most significant contributors were COMB, LOLC, RICH, CTC, and MGT, where COMB and LOLC led the way. 

In contrast HNB, SAMP, and JKH were the dominant negative contributors to ASPI, further reflecting mixed sentiment in the banking sector. 

Investor sentiment remained diverse, displaying interest in a variety of sectors, notably in blue-chip firms, and the manufacturing, and apparel sectors. Turnover saw a decline from the previous day, reflecting unpredictable market activity. The Capital Goods sector led turnover at 26%, followed by the Food, Beverage and Tobacco, and Banking sectors jointly contributing to 32% of overall turnover, further reflecting the varied and unpredictable interest of investors. 

The market overall saw a day of diversified and uncertain investor sentiment, led by the Banking and Capital Goods sectors.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Royal Ceramics and National Development Bank. Mixed interest was observed in Sunshine Holdings, Hayleys Fabric and Teejay Lanka whilst retail interest was noted in Browns Investments, SMB Leasing and Hela Apparel Holdings. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Royal Ceramics) whilst the sector index lost 0.58%. The share price of John Keells Holdings decreased by Rs. 1.50 to Rs. 201.50. The share price of Royal Ceramics closed flat at Rs. 35.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Sunshine Holdings and Browns Investments) whilst the sector index edged down by 0.01%. The share price of Sunshine Holdings gained one Rupee to Rs. 65.10. The share price of Browns Investments recorded a gain of 10 cents to Rs. 6.70.

Hayleys Fabric was also included amongst the top turnover contributors. The share price of Hayleys Fabric appreciated by Rs. 2.10 to Rs. 43.10.