CSE ends six-day losing run; crossings boost turnover

Having lost Rs. 140 billion in value post-Budget 2024, the Colombo stock market eked out a modest gain yesterday with crossings boosting turnover to over Rs. 2 billion.

Both indices were up by 0.3% thereby ending six consecutive days of losses. Turnover was Rs. 2.09 billion involving 46.5 million shares. 

It included Rs. 1.3 billion with Capital Alliance PLC CEO and Director Ajith Fernando’s personal holding of 21.7 million shares or 6.59% bought by Capital Alliance Holdings Ltd., at Rs. 60.10 per share which was same as on Tuesday.

Asia Securities said following six sessions of downward momentum, the market regained ground on Wednesday supported by NTBN (+2.5%), SAMP (+0.9%), COMBN (+0.8%), NDBN (+1.1%), FCT (+1.9%), DIST (+1.5%), and HAYL (+1.1%). On the flip side, JKH (-1.2%), MELS (-1.0%), and CFVF (-1.9%) ended in red.Retesting the 10,500 level, the ASPI dropped to 10,494 (-14 points) in mid-day trading, however recovered in the second half with buying support pushing the index to 10,548 (+40 points). The breadth of the market turned positive with 91 price gainers and 69 decliners.

Turnover was boosted by off-board transactions in CALT (Rs. 1.3 billion) and PABC (Rs. 143 million).

Asia also said foreigners recorded a net inflow of Rs. 145.6 million. Net foreign buying topped in PABC at Rs. 143 million and selling topped in JKH at Rs. 55.8 million.

First Capital said the Bourse bounced back to the green territory after 6-consecutive days of price declines, as investor confidence regained as Sri Lanka took positive strides in debt restructuring after reaching an agreement with the Exim Bank of China. “As a result, the Government is optimistic on receiving the second tranche of the IMF loan in December,” First Capital added.

It said the Index witnessed mixed sentiment until mid-day, yet gradually edged up as investor interests centred on the Banking counters (SAMP and COMB). As a result, the market reversed during the day and closed on a positive note at 10,548, gaining 40 points. Bullish sentiment persisted on hotel counters as the constant influx of tourists recorded in Nov which reported over 100,000 within the first 20 days.

Moreover, foreign investors turned net buyers after 6 straight sessions with active collection observed on PABC.

NDB Securities said crossings were witnessed in Capital Alliance and Pan Asia Banking Corporation, accounting for 69.0% of the turnover.

Mixed interest was observed in Melstacorp, John Keells Holdings and Commercial Bank whilst retail interest was noted in Watawala Plantations, Browns Investments and Lanka Milk Foods.

The Diversified Financials sector was the top contributor to the market turnover (due to Capital Alliance) whilst the sector index gained 0.51%. The share price of Capital Alliance decreased by 20 cents to Rs. 59.90.

The Banking sector was the second highest contributor to the market turnover (due to Pan Asia Banking Corporation and Commercial Bank) whilst the sector index increased by 0.88%. The share price of Pan Asia Banking Corporation closed flat at Rs. 17.50. The share price of Commercial

Bank appreciated by 70 cents to Rs. 84.70.

John Keells Holdings and Ceylinco Insurance were also included amongst the top turnover contributors. The share price of John Keells Holdings moved down by Rs. 2.25 to Rs. 187.75. The share price of Ceylinco Insurance edged up by Rs. 2.50 to Rs. 2,452.50.