No early cheer for Budget at Colombo bourse

The Colombo stock market yesterday closed on the up marginally despite the 2024 Budget presentation as investor activity was low though sentiment remained positive.

The benchmark ASPI gained by only 26 points or 0.2% and the active S&P SL20 by 5 points or 0.1%. Turnover was Rs. 558.6 million involving 19 million shares.

Asia Securities said the indices commenced the week on a positive note amidst low investor activity. The ASPI touched a high of 10,912 (+40 points) in early trading, however declined to 10,871 (-1 point) before turning range-bound between 10,880 and 10,890 in the second half of the session.

CALT (+4.9%), FCT (+5.6%), CFVF (+2.6%), HNBN (+4.8%), HNBX (+2.5%), NTBN (+1.2%), and LHCL (+3.0%) recorded price gains during the session while price losses in JKH (-1.1%), HAYL (-1.7%), BIL (-1.9%), AEL (-1.1%), LIOC (-1.1%) and SLTL (-1.5%) dragged down the indices. HNBN (+24 points), CTHR (+19 points), and COMBN (+6 points) came in as the major index movers for the day while JKH (-7 points) ended as the biggest laggard. The breadth of the market was negative with 72 price gainers and 91 decliners.

Turnover dropped as investors remained on the sidelines ahead of the budget reading. CALT topped the turnover list (Rs. 118 m).

First Capital said the market displayed mixed sentiment amidst moderate trading volumes and closed the day in the green zone at 10,899, marking a gain of 27 points, following the 2024 Budget update by the President.

The banking sector counters including HNB, DFCC, COMB and SAMP emerged as the top contributors during the day, whilst index-heavy weights including JKH, HAYL, and DIAL dragged the index down primarily due to poor results reported during the quarter.

Active investor participation also persisted on treasury counters including FCT and CALT during the day.

Turnover was recorded at a one-week low and 46.5% lower than the monthly average turnover of Rs. 1 billion, whilst the Diversified Financials and the Food, Beverage and Tobacco sectors collectively contributed 50% to the overall turnover. Furthermore, foreign investors continued to hold positions as net buyers for the fifth consecutive session, recording at Rs. 10.2 million for the day.

NDB Securities said high net worth and institutional investor participation remained subdued for the day whilst mixed interest was observed in John Keells Holdings, Ceylon Grain Elevators and Hayleys whilst retail interest was noted in Browns Investments, Capital Alliance and Industrial Asphalts. 

The Diversified Financials sector was the top contributor to the market turnover (due to Capital Alliance) whilst the sector index lost 0.30%. The share price of Capital Alliance increased by Rs. 3.20 to Rs. 68.10.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Ceylon Grain Elevators) whilst the sector index decreased by 0.16%. The share price of Ceylon Grain Elevators moved up by Rs. 2.50 to Rs. 183.50.

John Keells Holdings, Hayleys and Hayleys Fabric were also included amongst the top turnover contributors. The share price of John Keells Holdings lost Rs. 2.25 to Rs. 194.75. The share price of Hayleys recorded a loss of Rs. 1.40 to Rs. 80.40. The share price of Hayleys Fabric closed flat at Rs. 42.50.