Stock market opens fresh week on a dull note

The Colombo stock market began a fresh week on a dull note with indices moving the opposite direction amidst low turnover. 

The All Share Price Index increased 47.6 points or 0.6%, aided by gains in illiquid stocks (LOLC Development Finance rose by 23% or Rs. 104.75 to Rs. 567, thereby contributing 56 points to ASPI's gain), whilst the S&P SL20 declined by 18 points or 0.6%. 

Turnover was Rs. 1.4 billion involving 43.7 million shares. 

First Capital said overall, the bourse started off the week on a positive footing, retaining its position in the green pitch for the second consecutive day on the back of illiquid stocks. 

“ASPI surged at an intraday high of 7,814, reflecting significant investor enthusiasm within the first 25 minutes of the session. However, the market thereafter displayed a gradual downward trend during mid-day and afterwards regained its upward momentum over the second half of the session, closing at 7,794,” First Capital said. 

It said turnover was led by the Capital Goods sector followed by the Banks sector accounting for a joint contribution of 65%. Parcel trades accounted for 49% of the turnover. 

Asia Securities said the ASPI commenced the session sharply, surpassing the 7,800 level before witnessing a gradual decline. However, the index picked up during the closing hours due to price gains in NIFL while the more liquid S&P SL20 index trended downwards throughout the session. 

Asia said excluding NIFL’s contribution, the ASPI declined eight points during the session. 

It said foreign activity in JKH through block trades lifted activity to remain at moderate levels. 

The Capital Goods, Banks, Materials and Health Care Equipment and Services sectors led activity, collectively accounting for 77.6% of turnover. Foreigners recorded a net outflow of Rs. 12.5 million while their participation increased to 42.6% of turnover (previous day 17%). Estimated net foreign buying topped in HNB.N at Rs. 7.7 million and net foreign selling topped in JKH at Rs. 12.3 million. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Development Finance, Kotmale Holdings and Commercial Leasing and Finance.

It said high net worth and institutional investor participation was noted in John Keells Holdings and Commercial Bank. Mixed interest was observed in Dipped Products, Nawaloka Hospitals and Sampath Bank, whilst retail interest was noted in Browns Investments, Panasian Power and Industrial Asphalts. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings), whilst the sector index lost 0.44%. The share price of John Keells Holdings decreased by Rs. 1 (0.74%) to close at Rs. 134.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank and Sampath Bank), whilst the sector index decreased by 0.79%. The share price of Commercial Bank lost Rs. 1 (1.14%) to close at Rs. 86.90. The share price of Sampath Bank declined by Rs. 0.30 (0.57%) to close at Rs. 52.20.

Dipped Products and Nawaloka Hospitals were also included amongst the top turnover contributors. The share price of Dipped Products moved up by Rs. 1.10 (2.13%) to close at Rs. 52.70. The share price of Nawaloka Hospitals recorded a gain of Rs. 1 (17.54%) to close at Rs. 6.70.

Separately, Shalimar, Selinsing, Good Hope and Indo Malay announced their interim dividends of Rs. 8.90, Rs. 9.50, Rs. 10.77 and Rs. 7.58 per share respectively.