CSE closes shortened week on the up

The Colombo stock market yesterday ended a shortened week on the up with improved investor activity.

The active S&P SL20 gained by 1% and the benchmark ASPI by 0.8%. Turnover improved to Rs. 1.4 billion involving 76.6 million shares.

For the national holidays-shortened week the ASPI gained 79.09 points (+0.70%) during the week while the S&P SL20 gained 19.13 points (+0.60%). On a monthly basis, the ASPI gained 221.44 points (+1.99%) in September 2023 while the S&P SL20 gained 66.65 points (+2.13%).

Asia Securities said the market concluded the shortened trading week on a positive note with the ASPI reclaiming the 11,300 levels supported by price gains in banking stocks NTBN (+1.2%), SAMP (+2.5%), COMBN (+2.4%), NDBN (+1.0%), and HNBN (+1.8%).

In addition, FCT (+3.2%), CALT (+2.6%), and CFVF (+3.2%) showed positive momentum during the session. Similarly, manufacturing stocks MGT (+4.3%), DIST (+4.5%), DIPD (+4.2%), and GLAS (+2.3%) scaled sizable price gains.

COMBN (+13 points), SAMP (+13 points), and CTHR (+12 points) came in as the biggest index movers.

Turnover was led by JKH (Rs. 218 m), CTHR (Rs. 123 m), and MGT (Rs. 107 m).

Asia also said foreigners recorded a net inflow of Rs. 2.8 m. Net foreign buying topped in CTHR.N at Rs. 123 m and selling topped in JKH at Rs. 41 m.

First Capital said the Bourse rallied with a gain fuelled by bullish optimism continuing its winning streak from the previous session. Both the ASPI and S&P SL 20 indices closed in the green zone at 11,336 and 3,198, respectively, reflecting renewed confidence following S&P Global’s upgrade of Sri Lanka’s local currency rating from SD (Selective Default) to CCC+/C post domestic debt restructuring. This positive sentiment also bolstered the market turnover. After two consecutive days of foreign buying, a shift to foreign selling was witnessed on JKH. MGT and DIPD gained momentum following their dividend announcements during the day. Retail activity was evident in the Food, Beverage, and Tobacco sector, contributing 16% to the market turnover, while the Capital Goods sector took the lead, making the highest contribution at 26%. Additionally, there was a resurgence of investor interest in treasury shares, spurred by the dip in yield rates across the board after yesterday’s T-bill auction.

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp, Nations Trust Bank, and Hayleys. Mixed interest was observed in John Keells Holdings, C T Holdings and Distilleries whilst retail interest was noted in UB Finance Company, Browns Investments and Hayleys Fabric.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 0.39%. The share price of John Keells Holdings increased by 25 cents to Rs. 192.75.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp) whilst the sector index edged up by 0.05%. The share price of Melstacorp declined by 60 cents to Rs. 86.10.

C T Holdings, Hayleys Fabric and Nations Trust Bank were also included amongst the top turnover contributors. The share price of C T Holdings gained Rs. 17.25 to Rs. 245. The share price of Hayleys Fabric moved up by Rs. 2 to Rs. 48. The share price of Nations Trust Bank recorded a gain of Rs. 1.25 to Rs. 109.75.

Separately Talawakelle Tea Estates, Kelani Valley Plantations and Haycarb announced their dividends of Rs. 3.50, Rs. 1 and Rs. 2 per share respectively.