CSE ends week with losses amidst high turnover

The Colombo stock market ended the week with losses amidst high activity on the part of investors focused on profit-taking.

The benchmark ASPI lost 1.7% whilst the more active S&P SL20 lost 4.5%. The average daily turnover was Rs. 3.86 billion, higher than Rs. 2.8 billion in the previous week.

On Friday, S&P SL20 declined by 1% and the ASPI by 0.2%. Turnover was Rs. 4.1 billion involving 129.4 million shares.

Asia Securities said the indices ended the week lower as investors continued to take profits from banking stocks, while NBFIs witnessed increased buying interest during the session. COCR (+6.1%), CALT (+9.6%), CFIN (+6.3%), CFVF (+8.3%), CFVF (+8.3%), PLC (+3.2%), and VFIN (+2.7%) recorded sizeable price gains while COMBN (-2.4%), SAMP (-1.5%), NDB (-6.7%), and SEYBX (-1.4%) settled with losses for the day. Overall, 92 stocks recorded price gains while 106 ended with losses.

Market turnover was driven by AGAL (Rs.439 million), COCR (Rs. 302 million), MGT (Rs. 226 million) and MELS (Rs. 219 million). 

The market saw a net foreign inflow of Rs. 8.6 million. 

MELS (Rs. 187 million) recorded the highest foreign inflow for the day while SAMP (Rs. 118 million) topped net foreign outflow.

First Capital said the bourse commenced the day on a positive note but failed to keep up the favourable momentum towards the end of the session due to a heavy streak of profit-taking on Banking sector shares and index heavyweights.

The diversified Financials sector led the index exceptionally well contributing positively whilst the Banking sector topped the negative contributors list resulting in the index landing in the red zone at 11,404 losing 22 points.

Among notable transactions, Agalawatte Plantation PLC (AGALA) recorded an off-board transaction of Rs. 436.4 million which amounted to a total of 10.9 million shares at Rs. 39.9 each which resulted in a stake change of 7% boosting the turnover, 15% higher than the monthly average of Rs. 3.6 billion, jointly aided by the Diversified Financials and Food, Beverage and Tobacco sectors by 54%.

NDB Securities said high net worth and institutional investor participation was noted in Agalawatte Plantations, Melstacorp, and Sampath Bank. Mixed interest was observed in Hayleys Fabric, Capital Alliance and Central Finance Company whilst retail interest was noted in Pan Asia Banking Corporation, Commercial Credit & Finance and Browns Investments.

The Diversified Financials sector was the top contributor to the market turnover (due to Commercial Credit & Finance and Capital Alliance) whilst the sector index gained 2.64%. The share price of Commercial Credit & Finance gained Rs. 2.30 to Rs. 39.80. The share price of Capital Alliance appreciated by Rs. 6.80 to Rs. 77.50.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Agalawatte Plantations and Melstacorp) whilst the sector index edged down by 0.04%. The share price of Agalawatte Plantations increased by Rs. 1.10 to Rs. 34.40. The share price of Melstacorp recorded a gain of 20 cents to Rs. 80.

Hayleys Fabric was also included among the top turnover contributors. The share price of Hayleys Fabric moved up by Rs. 3.30 to Rs. 42.30.

Separately Kelani Tyres announced its interim dividend of Rs. 5 per share.