CSE ends week on the up

The Colombo stock market managed to close the week on a positive note with improved investor sentiment.

The active S&P SL20 gained by 1.10% and the benchmark ASPI by 1.07% on Friday. During the week, the ASPI and the S&P SL 20 gained 2% and 2.7% respectively.

Turnover yesterday was Rs. 2.30 billion involving 81.34 million shares. Turnover during the week averaged Rs. 2.04 billion. 

First Capital said after a few sessions of profit taking Colombo Bourse witnessed sustained buying interest throughout the trading day amidst the improved participation from both retail and HNW investors. 

ASPI started the day on a bullish note, continuing its positive trend from previous day’s close. Selected Banking and Diversified Financial sector counters along with blue-chip stocks took the centre stage while renewed interest on Plantation sector stocks was observed mainly in KAHA, HAPU, UDPL and MASK. Accordingly, ASPI closed the trading session in green at 12,294 gaining 130 points. Meanwhile, turnover saw a 44.6% increase from yesterday and stood at Rs. 2.3 billion, marking a 12.8% increase from the monthly average standing at Rs. 2 billion. 

Furthermore, 24% of the overall turnover was contributed by the Banking sector whilst 39% of the turnover was jointly contributed by the Capital Goods and Food, Beverage and Tobacco sectors. Notably, foreign investors remained net buyers for the third consecutive session with a net foreign inflow of Rs. 107.2 million on the back of strong foreign buying interest on JKH with a foreign inflow of Rs. 63.5 million.

NDB Securities said indices closed in green as a result of price gains in counters such as Hatton National Bank, Commercial Bank, and Hatton National Bank nonvoting with the turnover crossing Rs. 2.3 billion. High net worth and institutional investor participation was noted in John Keells Holdings, Digital Mobility Solutions Lanka and Royal Ceramics. 

Mixed interest was observed in Commercial Bank, Hatton National Bank and Lanka Milk Foods whilst retail interest was noted in LOLC Finance, Browns Investments and Industrial Asphalts. 

Foreign participation in the market activity remained at subdued levels with foreigners closing as net buyers.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank and Hatton National Bank) whilst the sector index gained 1.43%. The share price of Commercial Bank gained Rs. 2 to close at Rs. 109. The share price of Hatton National Bank moved up by Rs. 4 to close at Rs. 217.75.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 0.13%. The share price of John Keells Holdings decreased by 50 cents to close at Rs. 197. Digital Mobility Solutions Lanka and Lanka Milk Foods were also included amongst the top turnover contributors. The share price of Digital Mobility Solutions Lanka recorded a loss of 20 cents to close at Rs. 38.70. The share price of Lanka Milk Foods appreciated by 90 cents to close at Rs. 30.80.