Retailers return as CSE sustains upward trend

The Colombo stock market sustained the positive momentum yesterday with improved retail investor participation.

Both indices gained by 0.3% and turnover improved to Rs. 769 million involving 30 million shares.

Asia Securities said the market exhibited positive momentum closing in the green for the fourth consecutive session. 

Due to renewed interest from HNIs in LLUB (+2.1%) and MELS (+5.9%), the ASPI staged a positive opening to the session, reaching a high of 10,720 (+36 points) in the first hour of trading. Subsequently, the index slowed its upward momentum and entered a range-bound phase, hovering between 10,680 and 10,700 during mid-day trading due to price losses in EXPO (-1.2%), COMBN (-1.0%), BIL (-2.1%), LMF (-3.4%), CALT (-1.1%), and CFVF (-1.8%). 

Nevertheless, there was a late-session surge in the index to 10,720, boosted by significant price increases in SCAP (+18.2%) and AAIC (+11.4%) driven by active retail buying during the session. Turnover was led by SAMP (Rs. 84 million), LLUB (Rs. 78 million), JKH (Rs. 65 million), and MELS (Rs. 63 million). MELS, contributing 24 points to the ASPI, emerged as the top index mover for the day. The market breadth was positive with 82 price gainers and 73 decliners.

Asia also said foreigners recorded a net outflow of Rs. 65.7 million. Net foreign buying topped in DIST at Rs. 49.8 million and selling topped in SAMP.N at Rs. 48.7 million.

First Capital said the Bourse ended in the green zone for the fourth consecutive session, on the back of blue chip counters such as MELS, RICH and HAYL.

It said the ASPI started the day on a positive note, yet moved sideways with a bit of volatility as investors took profits on the banking sector shares. Towards the latter part of the session the market saw a resurgence and increased again, ending the day at a 31 point increase to 10,714.

The market also saw an increased interest in AAIC and SCAP, following the news on the cabinet approval of an investment worth $ 100 million in Port City by Asiri Port City Hospital.

The market also saw relatively higher retail participation with a majority of turnover being led by the retail side.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Distilleries and Ceylon Tobacco Company. Mixed interest was observed in Sampath Bank, Chevron Lubricants and Melstacorp whilst retail interest was noted in Softlogic Capital, Browns Investments and Lanka Credit and Business Finance.

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Melstacorp and Distilleries) whilst the sector index gained 0.97%. The share price of Melstacorp recorded a gain of Rs. 5.10 to Rs. 91. The share price of Distilleries appreciated by 20 cents to Rs. 28.

The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank) whilst the sector index decreased by 0.48%. The share price of Sampath Bank increased by 10 cents to Rs. 70.80.

Chevron Lubricants and John Keells Holdings were also included amongst the top turnover contributors. The share price of Chevron Lubricants gained Rs. 1.90 to Rs. 93.80. The share price of John Keells Holdings moved up by 75 cents to Rs. 191.