CSE ends bullish week with 9% gain

The Colombo stock market ended a bullish week gaining by 9% amidst brisk investor activity though profit taking dented a higher gain.

During the week the benchmark ASPI gained by 9.1% and active S&P SL20 by 11.4%. Average daily turnover was Rs. 4.62 billion. In the previous week ASPI gained 103.5 points (1.1%) and S&P SL20 by 40 points (1.5%) whilst the CSE finished June with ASPI up +10.4% and S&P SL20 by 12.1% with average daily turnover of Rs. 1.46 billion. Yesterday the ASPI gained by 0.8% and the S&P SL20 by 0.2%. 

Turnover was Rs. 2.3 billion involving 102 million shares. 

Asia Securities said the indices wrapped up a stellar week post-DDO on a high note mainly driven by strong buying in banking sector and construction sector counters. 

On Friday (07), CALT (+7.2%), RCL (+5.7%), CFVF (+5.6%), HHL (+4.2%), PARQ (+10.8%), TKYON (+4.4%), MELS (+6.3%), VONE (+3.3%), and KHL (+6.1%) saw upward momentum while HAYL (-1.1%), ALUM (-1.0%), CICX (-1.6%), HNBN (-1.3%), COMBX (-1.5%), and EXPO (-1.4%) scaled down due to retail profit-booking. 

MELS ended as the biggest index driver (+19 points), followed by LOLC (+12 points), and RCL (+9 points). The breadth of the market remained strong with price gainers outnumbering decliners by a wide margin of 148 to 63.

Turnover was led by CALT (Rs. 303 million), RCL (Rs. 224 million), and MELS (Rs. 135 million). 

Frist Capital said the Bourse continued to remain in the green territory recording gains for the fifth straight session as bullish sentiment persisted among market participants led by a weekly gain of 859 points (9.1%).

The Index continued on a steady uptick throughout the trading session. Renewed interest was observed on primary dealing counters following the policy rate cut. However, selling pressure took over banking counters, possibly considering the impact on Net interest margins as lending rates fell. Diversified counters such as MELS, HHL and SUN attracted buying appetite during the day while the ASPI closed at 10,302 gaining 107 points. Turnover was led by a joint contribution of 50% from the Capital Goods sector (27%) and Diversified Financials sector (23%).

Active foreign participation was observed during the day while they remained net buyers for the 11th straight session recording a net foreign inflow of Rs. 118 million.

NDB Securities said on Friday high net worth and institutional investor participation was noted in Hemas Holdings, Royal Ceramics and John Keells Holdings. Mixed interest was observed in Melstacorp, Capital Alliance and Tokyo Cement Company whilst retail interest was noted in Browns Investments, Marawila Resorts and First Capital Holdings.

The Capital Goods sector was the top contributor to the market turnover (due to Royal Ceramics and Hemas Holdings) whilst the sector index gained 1.02%. The share price of Royal Ceramics gained Rs. 1.90 to Rs. 35. The share price of Hemas Holdings appreciated by Rs. 3.10 to Rs. 76.70.

Diversified Financials sector was the second highest contributor to the market turnover (due to Capital Alliance and First Capital Holdings) whilst the sector index increased by 2.31%. The share price of Capital Alliance increased by Rs. 3.20 to Rs. 47.40. The share price of First Capital Holdings recorded a gain of Rs. 2.20 to Rs. 41.50.

Melstacorp was also included amongst the top turnover contributors. The share price of Melstacorp moved up by Rs. 4.10 to Rs. 69.20