CSE begins March on the up

The Colombo stock market began the month of March on the up amidst rebound in investor sentiment.

The benchmark ASPI was up over 39 points or 0.37% and the active S&P SL20 was up 2 points. Turnover was Rs. 1.5 billion involving 49.8 million shares.

The Colombo Stock Exchange ended February on the up after a negative start for 2024 in January. ASPI gained by 3.3% in February and the active S&P SL20 improved by 4.9%. In contrast, January saw ASPI down 3.2% and S&P SL by 5.6%.

Average daily turnover in February was Rs. 1.73 billion as against Rs. 715 million in January.

Asia Securities said the ASPI ended the week on a positive note supported by price gains in UAL (+6.2%), LIOC (+3.1%), BIL (+4.8%), LOFC (+5.0%), and HNBN (+1.8%).

 Market was led by LOLC (Rs. 204 million), EXPO (Rs. 150 million), MELS (Rs. 136 million), and UAL (Rs.132 million). The breadth of the market was positive with 99 price gainers and 85 decliners.

Foreigners recorded a net outflow of Rs. 149.8 million. Net foreign buying topped in MELS at Rs. 128.0 million and selling topped in LOLC at Rs. 182.2 million.

First Capital said the bourse closed in the green despite a mixed sentiment observed. The ASPI stayed stagnant for the majority of today’s session but picked towards the latter part of the session ending at a 39 point increase to 10,691. Aside from HNB, banking sector counters saw a selling pressure emerging in today’s session. UAL and CTC saw an increased interest which resulted in a 6.6% and 1.9% price appreciation respectively following their dividend announcements. Further, a mixed sentiment was observed on blue chip counters. The largest positive contributors to the index were HNB, CARG & MELS whilst the largest negative contributors were COMB, DFCC and JKH.

Majority of the market turnover was contributed by the retail market, showing a revival in investors’ interest in the Colombo Bourse.

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp, John Keells Holdings and Hatton National Bank. Mixed interest was observed in LOLC Holdings, Expolanka Holdings and Union Assurance whilst retail interest was noted in Browns Investments, LOLC Finance and Vallibel Power Erathna.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Melstacorp) whilst the sector index gained 0.78%. The share price of Melstacorp moved up by Rs. 1.50 to Rs. 89.50.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Holdings) whilst the sector index increased by 1.10%. The share price of LOLC Holdings increased by Rs. 2.75 to Rs. 317.

Expolanka Holdings, Union Assurance and Lanka IOC were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 2.75 to Rs. 150.50. The share price of Union Assurance recorded a gain of Rs. 2.90 to Rs. 49.60. The share price of Lanka IOC appreciated by Rs. 3.25 to Rs. 108.25.

Separately, The Nuwara Eliya Hotels Company and C.M. Holdings announced their dividends of Rs. 36.50 and Rs. 5 per share respectively.