Mixed sentiments persist at CSE; turnover improves

The Colombo stock market continued its run of mixed sentiments whilst investor activity improved in terms of turnover and volume of shares traded.

The benchmark ASPI finished the day with a 4.56 points gain whilst the active S&P SL20 closed almost flat or down by 0.46 points. Turnover was higher than Monday at Rs. 2.6 billion involving 131.5 million shares. Foreigners remained net sellers.

Asia Securities said after a moderate first-half, the ASPI managed to close in green owing to a late-hour recovery on Tuesday (11) supported by price increases in GLAS (+4.0%), AHUN (+4.8%), HAYL (+3.5%), LIOC (+3.8%), BIL (+1.5%), and SPEN (+2.3%).

On the contrary, price losses in MELS (-1.0%), SCAP (-1.7%), HHL (-3.9%), LOLC (-1.4%), AEL (-1.1%), ACL (-1.4%), CICX (-1.1%), and VONE (-2.0%) dented the ASPI’s momentum during the session. Overall, 86 stocks recorded price gains while 110 closed in red.  SUN topped the turnover list (Rs. 359 million) as domestic investors snapped up foreign quantities while HAYL, LIOC, MELS, and BIL saw higher investor activity during the session.

Asia also said foreigners recorded a net outflow of Rs. 116.2 million. Net foreign buying topped in SPEN at Rs. 87.3 million and selling topped in SUN at Rs. 214.5 million.

First Capital said the Colombo bourse displayed a volatile trend as both the ASPI and S&PSL20 indices halted flat, concluding the day at 10,316 gaining 5 points after recording continuous sessions of heavy gains during the last week.

It said large cap counters and Diversified sector companies positively backed the index to touch the green zone and contributed towards the positive momentum.  The Banking sector shares continued to experience profit taking alongside Diversified financials as they impacted the index negatively. Despite the flat index movement Retail sector counters continued to witness improved interest concentrating mainly on small and mid-cap counters.

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp, Industrial Asphalts, and Hayleys. Mixed interest was observed in Sunshine Holdings, Lanka IOC and Capital Alliance whilst retail interest was noted in Browns Investments, Marawila Resorts and SMB Leasing nonvoting.

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Sunshine Holdings, Melstacorp and Browns Investments) whilst the sector index lost 0.46%. The share price of Sunshine Holdings closed flat at Rs. 50. The share price of Melstacorp recorded a loss of 70 cents to Rs. 69.10. The share price of Browns Investments appreciated by 10 cents to Rs. 6.60.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys) whilst the sector index increased by 0.52%. The share price of Hayleys gained Rs. 3 to R.s 88.90. Lanka IOC was also included among the top turnover contributors. The share price of Lanka IOC moved up by Rs. 5 to Rs. 135.