Mixed performance at CSE

The performance at the Colombo stock market was mixed yesterday cutting short the more convincing sentiment displayed on Monday.

The benchmark ASPI gained by 10 points or 0.12% whilst the active S&P SL20 closed almost flat. Turnover was Rs. 1.4 billion involving 82 million shares.

Asia Securities said the indices pared early gains as front-line stocks moved in opposite directions amid mixed investor sentiment. The ASPI initially reached a high of 8,452 (+76 points or +0.9%), however saw a gradual decline to 8,353 (-23 points or -0.3%) in mid-day trade.  Following this, the index recovered slightly to 8,386 to close with a marginal gain of 10 points (+0.1%). After a bout of price losses, Softlogic group stocks SCAP (+6.4%) and AAIC (+5.7%) witnessed steady gains during the session while CALT (+5.7%), ACL (+3.9%), CFVF (+3.9%), and FCT (+5.8%) also closed noticeably higher on retail buying. Nevertheless, EXPO (-1.7%), BIL (-1.5%), LIOC (-1.9%), and LOFC (-6.7%) recorded price losses for the day.

Turnover was led by SCAP (Rs. 271 million), CALT (Rs. 147 million), and AAIC (Rs. 140 million). SAMP provided the biggest boost to the ASPI, contributing 13 points to the index while EXPO ended as the biggest laggard (-7 points) during the session. The breadth of the market turned positive with 90 price gainers and 75 decliners.

Asia also said foreigners recorded a net inflow of Rs. 2.8 million. Net foreign buying topped in SUN at Rs. 6.6 million and selling topped in LOFC at Rs. 8.3 million. First Capital said the Bourse edged up marginally and managed to settle in the green zone as investor confidence was reinstated on the back of the President’s statement on the progress of the debt restructuring talks with the bilateral creditors – China, and India.

Retail participation witnessed only a marginal improvement as investors awaited further direction on domestic debt restructuring and signing of the IMF board level agreement. With the positive sentiment and the expectation on interest rates to ease down, investor sentiment gradually improved on the banking sector and treasury counters.

Although, index surged high in the beginning, sizable volatility was observed during the day and managed to close the day flat.

With the active participation of Softlogic companies AAIC and SCAP, insurance sector continued to lead the turnover with a contribution of 30%, followed by Diversified Financials sector which contributed 26% to the overall turnover.NDB Securities said high net worth and institutional investor participation remained subdued for the day. Mixed interest was observed in Softlogic Capital, Capital Alliance and Softlogic Life Insurance, whilst retail interest was noted in Browns Investments, LOLC Finance and People’s Leasing & Finance.

The insurance sector was the top contributor to the market turnover (due to Softlogic Life Insurance), whilst the sector index lost 0.13%. The share price of Softlogic Life Insurance moved up by Rs. 4.25 (4.36%) to close at Rs. 101.75.

The Diversified Financials sector was the second highest contributor to the market turnover (due to Softlogic Capital and Capital Alliance) whilst the sector index decreased by 0.28%. The share price of Softlogic Capital increased by 90 cents (6.38%) to close at Rs. 15. The share price of Capital Alliance gained Rs. 1.70 (5.70%) to close at Rs. 31.50.

Expolanka Holdings and Browns Investments were also included amongst the top turnover contributors. The share price of Expolanka Holdings recorded a loss of Rs. 3.25 (1.69%) to close at Rs. 189.25. The share price of Browns Investments declined by 10 cents to close at Rs. 6.60.