CSE ends week positively

The Colombo stock market yesterday ended the week on a positive note thanks to improved investor sentiment though activity levels were relatively subdued.

The benchmark ASPI finished the week with a gain of 309.7 points (2.8%) and the active S&P SL20 by 94.7 points (3.0%) in comparison to marginal negative closing in the previous week.

On Friday, the active S&P SL20 gained by 1.2% and the benchmark ASPI by 1%. Turnover was Rs. 1.1 billion involving 43 million shares.

Asia Securities said on Friday the market gained on the back of price increases in MGT (+3.3%), DIPD (+3.5%), EXPO (+2.5%), AHUN (+2.7%), RCL (+4.3%), VONE (+2.9%), TJL (+2.6%), and JKH (+1.1%). Nevertheless, activity on the Exchange continued at moderate levels. MELS (+19 points), SFCL (+10 points), and EXPO (+7 points) came in as the major index movers during the session. The breadth of the market was positive with 128 price gainers and 62 decliners.

Turnover was supported by MGT (Rs. 99 million), TKYO (Rs. 56 million), and DIST (Rs. 51 million).

Asia also said foreigners recorded a net outflow of Rs. 5.2 million. Net foreign buying topped in TKYO.N at Rs. 24.7 million and selling topped in DIST at Rs. 14.9 million.

First Capital said the market displayed a positive sentiment throughout the day on the back of thin volumes as uncertainty loomed ahead of the IMF committee review meeting which is to be held during mid-September 2023, which influenced the turnover to drastically dip to its almost 2 ½ month low whilst, the ASPI gained 109 points closing at 11,466.

Investors displayed improved interest in MGT as they expected the company to perform well during 2QFY24. Notably, the Hotel sector continued to excel during the day as the market participants remained optimistic as the nation welcomed 22,896 tourists during the first 6 days of September 2023 pushing the YTD figure to record at 927,214 whilst the industry leaders expect the hotel occupancy rates across the country to remain steady, not falling below 70%.