Lacklustre investor interest at Colombo stock market

The Colombo stock market managed to close on a positive note though investor activity was lacklustre.

The active S&P SL20 was up by 0.5% and the benchmark ASPI was flat. Turnover was Rs. 780.3 million involving 15 million shares. The market also suffered a net foreign outflow of nearly Rs. 100 million.

Asia Securities said the indices pared early gains amidst moderate turnover as investors remained on the sidelines, waiting for budget cues.

Trading hours were adjusted yesterday to facilitate the launch of regulated short selling and stock borrowing and lending.

Frontline stocks MELS (+5.4%), TILE (+2.8%), DIST (+2.6%), RCL (+1.8%), LFIN (+1.7%), CALT (+1.4%), LIOC (+1.3%), CCS (+1.1%), and ALUM (+1.1%) closed in green. However, price losses in CFIN (-4.6%), NTBN (-2.4%), FCT (-1.8%), COCR (-1.5%), TKYON (-1.4%), and COMBX (-1.5%) weighed down the indices during the session. The ASPI reached an intra-day high of 10,867 (+77 points), however moved downwards in the second half of the session to close at 10,792 (+2 points). MELS (+19 points), HNBN (+4 points), and LOLC (+4 points) came in as the biggest index movers for the day.

Foreigners recorded a net outflow of Rs. 98.2mn. Net foreign buying topped in NTB.N at Rs. 0.9mn and selling topped in JKH at Rs. 85.0mn.

First Capital said the Colombo bourse showcased a mixed investor sentiment during the day, as positive results announced so far fuelled positive optimism in the morning trading hours, yet selling pressure was visible towards the market close backed by uncertainty, resulting with ASPI closing the day at 10,792. This upward momentum was primarily driven by the banking sector, fuelled by Sri Lanka’s private credit growth, which continued its upward trajectory for the 4th consecutive month, surging by Rs. 69.9bn in September 2023.

MELS emerged as the highest contributor to the ASPI as it announced a first interim dividend of Rs. 4.27 per share. Furthermore, positive sentiment was evident in the tile sector driven by favourable quarter-over-quarter results in 2QFY24. However, as the trading day progressed into the second half, selling pressure emerged, primarily driven by uncertainties related to the upcoming budget.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Melstacorp, and Lion Brewery. Mixed interest was observed in Lanka IOC, Capital Alliance and Sampath Bank whilst retail interest was noted in Browns Investments, Vallibel Power Erathna and Colombo Land and Development Company.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index edged down by 0.01%. The share price of John Keells Holdings decreased by 25 cents to Rs 192.50.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp and Lion Brewery) whilst the sector index increased by 1.14%.

The share price of Melstacorp gained Rs. 4 to close at Rs 82.50. The share price of Lion Brewery moved up by Rs 4.50 to Rs 904.50.

Lanka IOC and Capital Alliance were also included amongst the top turnover contributors. The share price of Lanka IOC recorded a gain of Rs 1.50 to Rs 113. The share price of Capital Alliance appreciated by 80 cents to Rs 58.90.