ASPI down but investors step up focus on banking stocks

Investor sentiments at the Colombo stock market remained mixed yesterday with benchmark index down but renewed interest on banking sector stocks propelled the more liquid S&P SL20.

The All Share Price Index was down over 12 points whilst S&P SL20 gained by over 7 points. Turnover was Rs. 3.8 billion involving 133 million shares.

Asia Securities said the market ended on a mixed note as the ASPI ended marginally lower, paring down most of its early losses while the more liquid S&P SL20 Index returned to positive territory on the back of price gains recorded by banking sector stocks.

Compared to previous sessions, activity was recorded at healthy levels with turnover coming in at a one-week high  mainly driven by CLC (Rs. 772 million), LOFC (Rs. 703 million) and BIL (Rs. 271 million).

On the sectoral front, banking sector stocks SAMP (+5.3%), COMB (+2.5%), HNB (+2.4%), and NDB (+3.3%) saw higher retail and HNI buying interest during the session and closed with sizable gains as investors took cues from positive earnings reports released earlier in the day.

Following a 65-point gap up opening, the ASPI gradually slid into negative territory and touched an intra-day low of 12,265 (-100 points) in mid-afternoon trade. Picking up momentum thereupon, the index moved upwards and gained around 140 points in the second half of the session to reach a high of 12,405 boosted by price gains in CLC (+6.9%), SFL (+6.0%) LOFC (+1.9%), and BIL (+1.4%). 

However, the index witnessed another slight decline during closing hours and ended the session with a marginal loss of 12 points. Among the price decliners, losses recorded by EXPO (-0.5%), LOLC (-2.0%), PLR (-4.4%), VONE (-1.8%), and SUN (-1.2%) weighed heavily on the ASPI throughout the session.

Overall breadth of the market continued negative with 73 gainers and 143 decliners.

Asia also said foreigners recorded a net outflow of Rs. 16.2 million while their participation declined to 0.8% of turnover (previous day 1.9%). Net foreign buying topped in LOFC at Rs. 10.2 million and selling topped in EXPO at Rs. 9 million.

First Capital said ASPI fell lower with a marginal loss yet S&P SL20 rebounded to the green zone following the release of positive results and dividend announcements in some of the banking sector counters and related speculations.

Though the index started on an upbeat note, the market dampened lower by inflating selling pressure. After mid-day, the market managed to recover from the deep loss yet closed lower at 12,352, losing 12 points, First Capital said adding turnover was led by a sole contribution of 49% from Diversified Financials sector.

NDB Securities said high net worth and institutional investor participation was noted in Renuka Hotels Limited, Guardian Capital Partners and Richard Pieris & Company. Mixed interest was observed in Expolanka Holdings, Sampath Bank and LOLC Holdings whilst retail interest was noted in Browns Investments, Commercial Leasing & Finance and Lanka Orix Finance.

Diversified Financials sector was the top contributor to the market turnover (due to Commercial Leasing & Finance and Lanka Orix Finance) whilst the sector index lost 0.36%. The share price of Commercial Leasing & Finance increased by Rs. 3.20 (6.90%) to close at Rs. 49.60. The share price of Lanka Orix Finance gained 50 cents (1.88%) to close at Rs. 27.10.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index decreased by 0.61%. The share price of Browns Investments moved up by 20 cents (1.43%) to close at Rs. 14.20.

Renuka Hotels Limited and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Renuka Hotels Limited recorded a gain of Rs. 3.60 (4.14%) to close at Rs. 90.60. The share price of Expolanka Holdings declined by Rs. 1.75 (0.55%) to close at Rs. 319.25. Separately Teejay Lanka, Sampath Bank and Commercial Credit & Finance announced their interim dividends of 85 cents, Rs. 4.25 and one Rupee per share respectively.