Stock market remains resilient

The Colombo stock market demonstrated its new-found resilience yesterday, with indices gaining amidst healthy turnover despite some profit taking.

Acuity Stockbrokers said the Bourse ended on a positive note as the ASPI increased by 0.17% or 9.25 points to close at 5,360.28 points, while the S&P SL20 Index also increased by 0.07% or 1.58 points to close at 2,371.87.

Turnover decreased by 46.8% relative to Wednesday to Rs. 2 billion, while the crossings for the day amounted to 6.87% of the total day’s turnover. 

Foreign investors recorded a net outflow of Rs. 0.265 billion as against Rs. 0.702 billion on Wednesday.

First Capital said amidst profit-taking in selected capital goods and diversified financials counters, the Bourse withstood the selling pressure, continuing its drive in the positive direction for the third consecutive session. 

“The index experienced a drop during the early hour of trading as it hit its intraday low of 5,329. Thereafter the market recorded a continuous uptrend and closed at 5,360, gaining 9 points,” First Capital added. 

It also said turnover was led by the banking and diversified financials counters, amounting to 50% of total. Moreover the parcel trades in Central Finance, People’s Leasing and John Keells Holdings contributed to 7% of turnover. 

Foreign investors continued the cautious stance while recording low participation for more than a month.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Commercial Leasing & Finance, Ceylon Tobacco Company and Ceylon Cold Stores.

High net worth and institutional investor participation was noted in Central Finance, People's Leasing Company and John Keells Holdings. 

Mixed interest was observed in LOLC Holdings, DFCC Bank and Commercial Bank, whilst retail interest was noted in Hayleys Fabric, Access Engineering and Browns Investments. 

Foreign participation in the market activity remained at subdued levels, with foreigners closing as net sellers.

The Banking sector was the top contributor to the market turnover (due to DFCC Bank and Commercial Bank), whilst the sector index gained 0.45%. The share price of DFCC Bank gained Rs. 1.80 (2.80%) to close at Rs. 66.00 while the share price of Commercial Bank moved down by Rs. 0.10 (0.12%) to close at Rs. 83.00.

Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Holdings and Central Finance Company) whilst the sector index edged down by 0.03%. The share price of LOLC Holdings decreased by Rs. 3.30 (1.98%) to close at Rs. 163.00 while the share price of Central Finance Company recorded a loss of Rs. 1.40 (1.83%) closing at Rs. 75.10 whilst foreign holdings decreased by 2,004,652 shares.

John Keells Holdings was also included amongst the top turnover contributors. The share price of John Keells Holdings declined by Rs. 0.80 (0.60%) to close at Rs. 133.30.

Lanka IOC announced their first and final dividend of Rs. 0.75 per share while Raigam Wayamba Salterns announced their final dividend of Rs. 0.10 per share.