Turnover up at CSE; indices mixed

Investor activity rose yesterday at the Colombo stock market though indices closed mixed.

The benchmark ASPI gained by 39 points or 0.3% whilst the active S&PSL20 closed down by over 14 points or 0.4%. Turnover was Rs. 4.6 billion, up from Rs. 4.4 billion on Wednesday and involved 133.9 million shares. 

Asia Securities said the indices closed mixed due to price declines in heavyweights LOLC (-2.5%), HAYL (-1.2%), LOFC (-1.8%), VONE (-3.0%), SLTL (-2.6%), and BIL (-1.6%). 

Nevertheless, increased buying interest was observed in NBFIs boosted by CFIN (+11.4%), VFIN (+10.6%), and COCR (+4.2%). Similarly, front-line stocks CALT (+8.1%), SUN (+4.9%), HASU (+3.3%), and MGT (+2.6%) closed with price gains. 

Overall, 87 stocks recorded price gains while 115 settled with losses.

Turnover was led by DFCC (Rs. 359mn), JKH (Rs. 350mn), PABC (Rs. 332mn), and CFIN (Rs. 286mn).

Foreigners recorded a net inflow of Rs. 32mn. Net foreign buying topped in MELS at Rs. 48.7mn and selling topped in HNB.N at Rs. 47.4mn.

First Capital said the market commenced the day on a strong note, which gradually transitioned into a phase of slight profit-taking during the mid-day session. In spite of this profit-taking, the market managed to conclude the day on a positive note at 11,426, registering a gain of 39 points. 

Notably, the driving force behind this upward trajectory was the Banking and Finance counters, rebounding from the profit-taking activities observed during the last few sessions. Furthermore, treasury shares enticed investor engagement, due to significant decline in T-bill yield rates of over 200bps since yesterday’s weekly auction. Noteworthy investor activity centered around PABC, DFCC, and other mid-cap shares. 

Meanwhile, the market turnover surpassed the monthly average turnover of Rs. 3.6Bn by 30%. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Ceylon Tobacco Company, and Melstacorp. Mixed interest was observed in Pan Asia Banking Corporation, DFCC Bank and Central Finance Company whilst retail interest was noted in Hela Apparel Holdings, Browns Investments and LOLC Finance. 

The Diversified Financials sector was the top contributor to the market turnover (due to Central Finance Company and Capital Alliance) whilst the sector index gained 1.73%. The share price of Central Finance Company recorded a gain of Rs 13 to Rs 126.75. The share price of Capital Alliance appreciated by Rs 5.30 to Rs 70.70.

The Banking sector was the second highest contributor to the market turnover (due to DFCC Bank and Pan Asia Banking Corporation) whilst the sector index increased by 1.07%. The share price of DFCC Bank increased by Rs 5.60 to Rs 93.10. The share price of Pan Asia Banking Corporation moved up by Rs 2.50 to Rs 22.20. John Keells Holdings was also included amongst the top turnover contributors. The share price of John Keells Holdings gained by 50 cents to Rs 192.

Separately, Hunters & Company announced its final dividend of Rs 5 per share.