Turnover improves at CSE with net foreign inflow; indices mixed

The Colombo stock market yesterday saw relatively high turnover though indices ended on a mixed note.

Turnover amounted to Rs. 2.5 billion involving 108.2 million shares. The benchmark ASPI gained by 11 points or 0.1% whilst the active S&P SL20 declined by 2 points.

Asia Securities said following a subdued opening, the indices rebounded during the latter part of the session, resulting in the ASPI closing slightly up for the day. Block trades executed in LFIN significantly boosted turnover, marking a three-week high.

DIAL saw notable foreign buying during the session, resulting in a net foreign inflow of Rs. 163 million for the day. VPEL saw a sharp 14.3% gain for the day driven by the company’s dividend announcement. CTHR (+6 points) came in as the major driver of the ASPI for the day, followed by HAYL (+6 points), and VPEL (+4 points) while JKH (-4 points), LIOC (-3 points) and NTB (-3 points) ended as the biggest laggards on the ASPI. The breadth of the market was negative with 77 price gainers and 91 decliners.

First Capital said the ASPI observed a downward trend during morning hours but saw a resurgence towards midday with the index picking up, finally ending at an 11 point increase to 10,623. Counters in the Tiles industry saw an increased interest; notably, RCL.

The main positive contributors to the index were CTHR, HAYL and VPEL whilst the largest negative contributors were JKH, LIOC and NTB.

VPEL saw a large buying interest following its interim dividend announcement of Rs. 1.75 per share. Turnover was 66% higher than the month’s average of Rs. 1.5 billion. High net worth clients contributed to the majority of the market turnover, with multiple off-board transactions observed to have taken place during today’s session: notably 17 of such transactions taking place on LFIN with the total value amounting to Rs. 625.6 million.

NDB Securities said high net worth and institutional investor participation was noted in LB Finance, Hemas Holdings and Hayleys. Mixed interest was observed in Dialog Axiata, Lion Brewery and Expolanka Holdings whilst retail interest was noted in Vallibel Power Erathna, LOLC Finance and Marawila Resorts.

The Diversified Financials sector was the top contributor to the market turnover (due to LB Finance) whilst the sector index lost 0.52%. The share price of LB Finance decreased by 60 cents to Rs. 61.90.

The Telecommunication Services sector was the second highest contributor to the market turnover (due to Dialog Axiata) whilst the sector index decreased by 0.55%. The share price of Dialog Axiata lost 10 cents to Rs. 10.40.

Vallibel Power Erathna, Hemas Holdings and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Vallibel Power Erathna moved up by Rs. 1.10 to Rs. 8.80. The share price of Hemas Holdings recorded a gain of 20 cents to Rs. 74.50. The share price of Expolanka Holdings declined by 75 cents to Rs. 146.