Investor sentiment improves at Colombo stock market

The Colombo stock market yesterday witnessed improved sentiment and activity much to the relief of investors.

Both indices gained by 0.3% whilst turnover improved to Rs. 648.6 million involving 17 million shares.

First Capital said the bourse experienced a day of positive sentiment and increased market activity, rebounding from the losses recorded on Monday. The ASPI closed at 11,347, gaining 35 points and marking a 0.31% increase from the previous day, to which the most significant contributors were LOLC, CTC, JKH, RCL, and VONE, reflecting heightened positive activity amongst blue-chip firms.

The market’s bullish sentiment can be attributed to the release of positive quarterly results. Increased participation from retail investors triggered improvements in turnover, causing turnover to rise to Rs. 648.6 million displaying a 92% increase from the previous day, where the Capital Goods sector dominated turnover by 53%, followed by the Food, Beverage and Tobacco, and Banking sectors, jointly contributing to 20% of overall turnover. There was a net foreign outflow of Rs. 23 million signalling interest in external investments. The market overall saw a day of positive sentiment and increased activity primarily amongst blue-chip firms.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Holdings, Ceylon Tobacco Company and Royal Ceramics.

High net worth and institutional investor participation was noted in John Keells Holdings, Aitken Spence and Hayleys Fabric. Mixed interest was observed in Hayleys, Chevron Lubricants and LOLC Holdings whilst retail interest was noted in LOLC Finance, Prime Lands Residencies and Browns Investments.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings, Aitken Spence and Hayleys) whilst the sector index gained 0.60%. The share price of John Keells Holdings increased by Rs. 1.50 to Rs. 179.50. The share price of Aitken Spence lost Rs. 3 to Rs 116. The share price of Hayleys recorded a gain of 20 cents to Rs. 94.20.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover whilst the sector index increased by 0.58%.

Hayleys Fabric and Chevron Lubricants were also included amongst the top turnover contributors. The share price of Hayleys Fabric moved up by 90 cents to Rs. 47.90. The share price of Chevron Lubricants closed flat at Rs. 119.