CSE ends another week of losses despite gain on Friday; JKH regains lost value further

The Colombo stock market ended another week of losses despite gains in the last two days amidst low turnover.

During the week, the benchmark ASPI lost 1.6% and the active S&P SL20 more sharply by 2.8%. Last week the two indices declined by 0.8% and 1.3% respectively.

Turnover this week averaged Rs. 1.29 billion higher in comparison to Rs. 577 million due to the Rs. 4 billion figure on Wednesday due to crossings on Overseas Realty.

Yesterday’s turnover was Rs. 776.6 million involving 29.3 million shares whilst the ASPI gained by nearly 3 points and the S&P SL20 by 9 points.

First Capital said the Colombo Bourse continued its recovery from Thursday as investors embraced an optimistic sentiment, fuelling hopes for a sign of recovery while closing both indices in green. The benchmark ASPI started the day on a steady note, gaining over 30 points in the morning hours. However, with the sideways movement, the index closed the day at 11,443 gaining 3 points. In a remarkable turnaround, JKH rebounded from a 9.3% price drop following the rights issue and subdivision announcement on Wednesday, gaining 4.9% in two days, and becoming the top positive contributor to the index yesterday. COMB, NTB, CDB and LOLC emerged as the remaining top positive contributors to the index.  The Capital Goods sector contributed 36% to the turnover, followed by the Consumer Services and Food, Beverage and Tobacco sectors jointly contributing 32% to the overall turnover. Foreign investors remained net buyers, with a net inflow of Rs. 66.7 million.

NDB Securities said the ASPI edged up as a result of price gains in counters such as John Keells Holdings, SMB Leasing nonvoting and Nations Trust Bank.

High net worth and institutional investor participation was noted in John Keells Holdings, Hunas Holdings and Dialog Axiata. Mixed interest was observed in Hayleys Fabric, Mackwoods Energy and Access Engineering whilst retail interest was noted in Browns Investments, Commercial Bank rights and Softlogic Holdings.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Access Engineering) whilst the sector index gained 1.49%. The share price of John Keells Holdings increased by Rs. 5 to Rs. 180.25. The share price of Access Engineering closed flat at Rs. 21.80.

The Consumer Services sector was the second highest contributor to the market turnover (due to Hunas Holdings) whilst the sector index increased by 0.25%. The share price of Hunas Holdings gained 60 cents to Rs. 30.30.

Hayleys Fabric and Melstacorp were also included amongst the top turnover contributors. The share price of Hayleys Fabric moved up by 60 cents to Rs. 48.60. The share price of Melstacorp recorded a gain of 20 cents to Rs. 80.80.