Stock market returns to positive territory but turnover remains low

The Colombo stock market returned to positive territory with both indices on the up though turnover remained low.

The All Share Price Index gained by 17 points and S&P SL20 gained by five points. Turnover was Rs. 1.35 billion involving 1.37 million shares.  

First Capital said the bourse restored its position in the green pitch, regaining an optimistic sentiment while registering an index high of one week. 

“Despite the ASPI witnessing a short-lived dip at 7,776 in the first 26 minutes of trading, the index recovered with a steady rise that lasted the remainder of the session, eventually reaching an intraday high at 7,836, before closing at 7,809,” First Capital said. 

It said turnover was led by the Capital Goods sector closely followed by the Diversified Financials sector accounting for a joint contribution of 53%. 

Asia Securities said following an initial decline, the ASPI picked up gradually as the index surpassed the 7,800-level led by price gains in index-heavy counters such as NIFL, LOLC and JKH. 

Turnover topped in JKH, driven by foreign selling in the stock while overall activity remained at yesterday’s levels. 

The Capital Goods, Diversified Financials, Food, Beverage and Tobacco and Utilities sectors led activity, collectively accounting for 66.9% of turnover. 

Asia said foreigners recorded a net outflow of Rs. 336.2 million while their participation increased to 14.7% of turnover (previous day 9.6%). Estimated net foreign buying topped in LVEF at Rs. 5.3 million and net foreign selling topped in JKH at Rs. 243 million.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Development Finance, LOLC Holdings and Ceylon Cold Stores.

It said high net worth and institutional investor participation was noted in Lanka Milk Foods. Mixed interest was observed in John Keells Holdings, LOLC Holdings and Windforce Ltd., whilst retail interest was noted in Panasian Power, People’s Leasing and Finance and Browns Investments. Furthermore, foreigners closed as net sellers mainly due to foreign selling in John Keells Holdings.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings), whilst the sector index gained 0.22%. The share price of John Keells Holdings increased by Rs. 0.25 (0.19%) closing at Rs. 131.25, whilst foreign holdings decreased by 1,851,277 shares.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Holdings and People’s Leasing and Finance), whilst the sector index increased by 0.13%. The share price of LOLC Holdings gained Rs. 6.75 (1.71%) to close at Rs. 401.75. The share price of People’s Leasing and Finance recorded a loss of Rs. 0.20 (1.54%) to close at Rs. 12.80.

Windforce and Commercial Bank were also included amongst the top turnover contributors. The share price of Windforce closed flat at Rs. 18.80. The share price of Commercial Bank edged up by Rs. 0.10 (0.12%) to close at Rs. 86.50.