Profit taking keeps Colombo stock market in check

Friday, 31 January 2025 03:08 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday turned bearish due to profit taking amidst high turnover.

The benchmark ASPI closed with 2 points down whilst the active S&P SL20 closed unchanged. Turnover was Rs. 7.34 billion involving 364.2 million.

First Capital said the Colombo bourse experienced another volatile trading session, mirroring the trend with the ASPI maintaining a standstill. The index saw a modest decline of just 2 points, closing at 17,115. Furthermore, HNW and retail participation dipped relative to the previous trading session. BIL, RCL, MELS, LOLC and HAYL emerged as the top negative contributors to the index. Sentiment around specific stocks in the construction sector showed a notable uptick.

The Capital Goods sector emerged as the most significant contributor to turnover, accounting for 53% of the total, driven by heightened foreign selling activity in JKH. The Banking, and Food, Beverage & Tobacco sectors collectively contributed 20% to the overall turnover. Asia Securities said AEL (+4.0%), ALUM (+3.8%), NDB (+1.6%), and SAMP (+0.6%) closed higher while LOFC (-2.9%), BIL (-2.2%), DIPD (-1.6%), and PLC (-1.0%) ended in red during the session. Moreover, investors showed increased interest in insurance sector stocks like, COOP (+12.1%), AAIC (4.4%) and LGIL (+4.2%) during the session. The breadth of the market was positive, with 117 price gainers and 108 decliners.

A notable increase in foreign activity was observed in the market today, with a net foreign outflow of Rs. 2.2 billion led by JKH. Market turnover was led by significant off-board transactions in JKH (Rs. 2.1 billion) and AEL (Rs. 127 million). NDB (+7 points) and COOP (+7 points) came in as the major index movers while BIL (-6 points) and RCL (-5 points) ended as the biggest laggards on the ASPI.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Access Engineering and Seylan Bank nonvoting. Mixed interest was observed in Softlogic Capital, Browns Investments and Sierra Cables whilst retail interest was noted in Renuka Agri Foods, Agstar and LVL Energy Fund.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings, Access Engineering and Sierra Cables) whilst the sector index gained 0.29%. The share price of John Keells Holdings increased by 10 cents to Rs 22.70. The share price of Access Engineering gained Rs 1.60 to Rs. 42. The share price of Sierra Cables appreciated by 70 cents to Rs. 17.30.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index edged up by 0.07%. The share price of Browns Investments recorded a loss of 20 cents to Rs. 9.10.

Softlogic Capital was also included amongst the top turnover contributors with its share price closing flat Rs. 6.20.

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