CSE ends week with over 4% gain amidst renewed investor interest

The Colombo stock market saw renewed investor interest persisting with over 4% gain achieved this week amidst improved turnover.  For the week the ASPI gained 511.52 points (4.83%) while the S&P SL20 gained 125.06 points (4.03%). Last week the indices only gained by 2.8%. Daily turnover averaged Rs. 3,666 million, slightly improving from Rs. 3,132 million last week.

Asia Securities said the ASPI continued its bullish momentum for a 15th consecutive session on Friday mainly driven by SAMP (+5.2%), CICN (+5.6%), CICX (+6.2%), LIOC (+1.7%), FCT (+1.3%), CFVF (+2.1%), and DIST (+2.2%). 

However, SCAP (-1.7%), UBC (-1.9%), AAIC (-3.9%), and HAYL (-0.9%) closed in red. The ASPI saw an initial decline to 10,980 (-47 points), however rebounded on a strong note crossing the 11,100 mark in the second half of the session to close at 11,107 (+80 points). SAMP ended as the biggest index mover contributing 33 points to the ASPI, followed by CINS (+14 points). The breadth of the market remained positive with 119 price gainers and 79 decliners.

Turnover on Friday was led by DFCC (Rs. 356 million), SAMP (Rs. 335 million), JKH (Rs. 203 million), and CICN (Rs. 199 million).

Asia also said foreigners recorded a net outflow of Rs. 24.3 million. Net foreign buying topped in DFCC.N at Rs. 41.2 million and selling topped in LIOC at Rs. 36.6 million.

First Capital said the market commenced its activities on a dull note due to intensified selling pressure on the back of profit taking but picked up the bullish sentiment resulting in the index to halt in the green zone closing at 11,107 registering a 16-month high gaining 80 points. 

Moreover, selected banking sector counters mainly SAMP backed the index exceptionally well contributing to the positive momentum. Consumer stocks mainly CIC and CARG witnessed revitalised interest during the day as retail investors displayed positive interaction as they expected the import ban relaxation to possibly allow demand to expand. 

In addition, Tourism sector displayed improved interest as the tourist arrivals for July surpassed 70,000 within the first 16 days despite the off season while YTD tourists’ arrivals surpassed 700,000. NDB Securities said high net worth and institutional investor participation was noted in DFCC Bank, Dankotuwa Porcelain, and Cargills. Mixed interest was observed in Sampath Bank, CIC Holdings nonvoting, and John Keells Holdings whilst retail interest was noted in Ceylon Tea Brokers, RIL Property, and Browns Investments. 

The Banking sector was the top contributor to the market turnover (due to DFCC Bank and Sampath Bank) whilst the sector index gained 1.07%. The share price of DFCC Bank increased by 20 cents to Rs. 75.20. The share price of Sampath Bank gained Rs. 3.70 to Rs. 75.

The Materials sector was the second highest contributor to the market turnover (due to CIC Holdings voting and nonvoting) whilst the sector index increased by 1.47%. The share price of CIC Holdings recorded a gain of Rs. 4 to Rs. 76. The share price of CIC Holdings nonvoting appreciated by Rs. 3.50 (6.24%) to Rs. 59.60.

John Keells Holdings was also included among the top turnover contributors. The share price of John Keells Holdings moved down by 50 cents to Rs. 158.50.

Separately Ceylon Tea Brokers announced its dividend of 68 cents per share.