CSE closes positively after two weeks of losses

The Colombo stock market sustained its positivism yesterday though marginal to Thursday’s strong rebound and finished the week on the up.

Both indices gained by over 0.6%. Turnover was Rs. 738.5 million involving 43.3 million shares.  On Thursday the bourse shot up by 2% following the 250 basis points policy rate cut by the Central Bank thereby reviving prospects for the economy which continues to face challenges.

This week the ASPI and the S&P SL20 gained 0.65% and 0.26% respectively ending two weeks of losses. In the previous week the ASPI lost 0.2% and the S&P SL20 gained 0.1%.

Average daily turnover was Rs. 703 million down from Rs. 778 million in the previous week.

Asia Securities said building upon Thursday’s positive momentum, the indices kicked off the session on Friday with a sharp upbeat note with the ASPI increasing as much as 134 points (+1.5%) to reach an intra-day peak of 8,754 in early trade. Thereupon, the index consolidated and hovered between 8,750 - 8,800 to close out the session at 8,754 (+62 points or +0.7).

Front-line stocks LOFC (+8.3%), BIL (+4.0%), HAYL (+1.2%), SLTL (+3.1%), TJL (+1.4%), RCL (+1.6%), CICX (+1.6%), CCS (+5.2%), and VONE (+4.0%) closed in green while LIOC (-2.7%), CFIN (-2.8%), FCT (-2.5%), and CALT (-1.3%) settled with losses. VONE (+13 points) ended as the biggest index mover for the day, followed by LOFC (+6 points), and BIL (+5 points). The breadth of the market was positive 121 price gainers and 61 decliners.

Turnover was led by JKH (Rs. 185 million).

Foreigners recorded a net outflow of Rs. 12 million. Net foreign buying topped in LLUB at Rs. 2.6 million and selling topped in CFIN at Rs. 8.8 million.

First Capital said the bourse showed signs of recovery following the sizable relaxation of monetary policy rates while retail participation improved too.

The Index moved on a steep upswing as soon as the market commenced, led by the Banking sector and blue chips. Meanwhile, active retail participation was observed on LOFC with heavy volumes. However, towards the latter part of the day selling pressure slightly emerged in the market with profit booking on LIOC while selling was also witnessed on dollar earning companies on the back of rupee appreciation. Nevertheless, the index managed to recoup losses and closed firmly in the green for the third straight session at 8,754 gaining 62 points.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings and Hatton National Bank. Mixed interest was observed in Lanka IOC, Hayleys and Dialog Axiata whilst retail interest was noted in LOLC Finance, Browns Investments and Softlogic Capital.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 0.89%. The share price of John Keells Holdings increased by 50 cents to close at Rs. 138.50.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Finance) whilst the sector index increased by 0.25%. The share price of LOLC Finance moved up by 40 cents to Rs. 5.20.

Hatton National Bank, Browns Investments and Lanka IOC were also included among the top turnover contributors. The share price of Hatton National Bank lost 75 cents to Rs. 119.50. The share price of Browns Investments recorded a gain of 20 cents to Rs. 5.20. The share price of Lanka IOC declined by Rs. 3.75 to Rs. 133.

Separately, Tokyo Cement Company announced its interim dividend of Rs. 1.50 per share.