Mixed investor sentiments at Colombo stock market

The Colombo stock market produced mixed sentiments yesterday amidst lacklustre investor activity.

The benchmark ASPI gained by mere 0.03% and the active S&P SL20 dipped by 0.17%. Turnover was Rs. 2.2 billion involving 55.07 million shares.

Foreigners recorded a net outflow of Rs. 252.4 million while their participation increased to 10.7% of turnover (previous day 2.8%). Net foreign buying topped in GLAS.N at Rs. 10.2 million while net foreign selling topped in JKH.N at Rs. 249.7 million .

Asia Securities said the indices turned range-bound yesterday with JKH (-1.6%), CFIN (-1.7%), HNBX (-1.0%), and TJL (-1.1%) closing down and DIST (+4.2%), SCAP (+6.1%), GLAS (+2.6%), and HAYL (+1.3%) ending in green. The breadth of the market was positive with 100 price gainers and 76 decliners.

Turnover was supported by JKH (Rs. 308 million), DIST (Rs. 135 million), and GRAN (Rs. 96 million). 

First Capital Research said the market exhibited a sideways yet volatile trend, ultimately closing flat at 11,357.

Notably, HAYL emerged as a prominent contributor to the index, buoyed by expectations of improved earnings stemming from easing finance costs and heightened profitability, which drew significant investor interest amid declining interest rates.

It also said retail investors displayed interest for shares in the food, beverage, and tobacco sectors, with GRAN and DIST leading the charge. The consumer services sector also made a positive impact on the ASPI, with AHPL taking the lead among gainers, largely driven by optimistic expectations for strong results in the forthcoming quarter.

Despite these pockets of activity, overall market participation remained subdued, resulting in a turnover of Rs. 1.5 billion, which is 47.4% lower than the monthly average turnover of Rs. 3 billion. It is noteworthy that the food, beverage and tobacco sector and the capital goods sector collectively contributed 52% to the total market turnover.

NDB Securities said  high net worth and institutional investor participation was noted in distilleries.

Mixed interest was observed in John Keells Holdings, Ceylon Grain Elevators and Capital Alliance whilst retail interest was noted in Browns Investments, Softlogic Capital and Agarapatana Plantations.

It also added that foreigners closed as net sellers. Food, beverage and tobacco sector was the top contributor to the market turnover (due to Distilleries and Ceylon Grain Elevators) whilst the sector index gained 0.55%. The share price of Distilleries gained Rs. 1.10 to Rs. 27. The share price of Ceylon Grain Elevators moved up by Rs. 5.50 to Rs. 175.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index decreased by 0.65%. The share price of John Keells Holdings decreased by Rs. 3 to Rs. 185.50.

Softlogic Capital and Capital Alliance were also included amongst the top turnover contributors. The share price of Softlogic Capital recorded a gain of 70 cents  to  Rs. 12.20. The share price of Capital Alliance appreciated by 70 cents  to Rs. 83.10.