CSE begins pre-election week positively

Tuesday, 12 November 2024 02:55 - - {{hitsCtrl.values.hits}}

The Colombo stock market began the pre-Parliamentary election week on a positive note, though activity was below recent average.

The benchmark ASPI gained by 0.6% to close at a 33-week high and the active S&P SL20 by 0.6%.

Turnover was Rs. 2.4 billion involving 81.8 million shares. First Capital said the broad market maintained bullish momentum, extending the positive sentiment from the previous week’s close, primarily driven by gains in the Banking sector and blue-chip stocks. The benchmark index, ASPI, touched a 33-month high, closing the day at 12,875, gaining 75 points. Additionally, Construction sector counters like LALU and ACL coupled with Food, Beverage & Tobacco sector counters such as WATA and SUN witnessed increased buying interest.

The rise in global palm oil prices boosted sentiment towards WATA, leading to a 3.2% increase in share price today, with expectations of further price gains.

Amidst multiple crossings, turnover increased by 19% compared to Friday, but marked a 14.1% decrease from the monthly average.

The Banking sector led the turnover by 42%, followed by the Food, Beverage and Tobacco, and Capital Goods sectors jointly contributing 31% of the overall turnover. Foreign investors remained net sellers with a net outflow of Rs. 23.3 million.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Commercial Bank, Ceylon Tobacco Company and Melstacorp.

High net worth and institutional investor participation was noted in Hatton National Bank, Ceylon Cold Stores and Pan Asia Banking Corporation. Mixed interest was observed in Lanka Aluminium Industries, John Keells Holdings and Commercial Bank, whilst retail interest was noted in Industrial Asphalts, LOLC Finance and Softlogic Finance.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Pan Asia Banking Corporation and Commercial Bank), whilst the sector index gained 1.39%. The share price of Hatton National Bank increased by Rs. 3.25 to Rs. 230. The share price of Pan Asia Banking Corporation recorded a gain of 80 cents to Rs. 26.80. The share price of Commercial Bank appreciated by Rs. 3.25 to Rs. 118.25.

Lanka Aluminium Industries and John Keells Holdings were also included amongst the top turnover contributors. The share price of Lanka Aluminium Industries gained Rs. 1.60 to Rs. 27.50. The share price of John Keells Holdings moved down by 30 cents to Rs. 20.90.