CSE ends week on the up

The Colombo stock market ended the week with both indices gaining despite moderate turnover.

The benchmark ASPI gained by 0.7% and the active S&P SL 20 by 1.8%. Yesterday the S&P SL20 gained by 1.2% and the ASPI by 0.75%.

Average daily turnover for the week was Rs. 727 million whilst yesterday’s figure amounted to Rs. 1 billion involving 35 million shares.

In the previous week the ASPI and the S&P SL20 gained 1.8% and 2.2% respectively whilst recording an average daily turnover of Rs. 982 million.

Asia Securities said the market ended the week on a robust note with the ASPI trending towards 10,800 and narrowly falling short on Friday. 

Significantly, market turnover surged to Rs. 1.1 billion (previous session Rs. 431 million) reflecting widespread buying and a noteworthy improvement in investor interest ahead of the IMF review for the second tranche scheduled for next week (12 December). EXPO (Rs. 206 million) generated the highest turnover for the day. 

Notably, EXPO has become the stock with the highest market capitalisation ($ 838 million) following a 4.1% price gain. This surpasses the second-highest, JKH, with a market capitalisation of $ 806 million. The banking sector witnessed heightened activity as the market looks forward to positive developments on the IMF front in the coming week. The sector index gained 1.5% during the session led by SAMP (+1.5%), NTBN (+1.7%), COMBN (+2.3%), PABC (+2.1%), and SEYBN (+3.1%). Additionally, price gains in LMF (+4.1%), LIOC (+3.6%), DIAL (+1.1%), SUN (+1.7%), and MELS (+3.3%) contributed further strength to the ASPI. Nevertheless, SLTL (-1.5%), CFVF (-2.0%), FCT (-1.9%), and LHCL (-2.3%) closed in red. 

COMBN (+13 points), MELS (+13 points), and EXPO (+10 points) emerged as the primary contributors to the ASPI’s positive performance.

Asia also said foreigners recorded a net outflow of Rs. 22.4 million. Net foreign buying topped in RICH at Rs. 26.6 million and selling topped in DIAL at Rs. 20.3 million.

First Capital said the Bourse closed on a positive note, ending in the green zone for the 4th consecutive day. ASPI started off strong and continued its upward trend throughout the session ending on an 81 point gain closing at 10,793. Banking counters such as COMB and SAMP, and other counters such as EXPO and MELS were the main contributors to the index’s gain. Market retail participation was reactivated on EXPO and trickled down to other counters reviving the previously lost confidence in the market. Market turnover did a 180 turn and recorded a Rs. 1.09 billion turnover, which is 3.4% higher than monthly average of Rs. 1.05 billion. Market turnover was mainly led by high interest and trading on EXPO, which contributed to 19% of the total daily turnover. On the flip side, foreign investors turned to net sellers today with large selling on DIAL and JKH.

NDB Securities said high net worth and institutional investor participation was noted in Hayleys, John Keells Holdings, and Renuka Holdings. Mixed interest was observed in Expolanka Holdings, Sampath Bank and Lanka Milk Foods whilst retail interest was noted in SMB Leasing, Blue Diamonds Jewellery Worldwide and Browns Investments.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank) whilst the sector index gained 1.51%. The share price of Sampath Bank gained Rs. 1.10 to Rs. 72.30.

The Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index increased by 4.07%. The share price of Expolanka Holdings increased by Rs. 5.50 to Rs. 140.25.

Lanka Milk Foods, Lanka IOC and Hayleys were also included amongst the top turnover contributors. The share price of Lanka Milk Foods moved up by Rs. 9.25 to Rs. 234.25. The share price of Lanka IOC recorded a gain of Rs. 3.75 to Rs. 106.75. The share price of Hayleys appreciated by 20 cents to Rs. 74.