CSE gains after 12 days of decline

After three weeks or 12 marker days of decline, the Colombo Bourse yesterday managed to close on the up though trading volume remained the same.

The active S&P SL20 gained by 0.8% and the benchmark ASPI by 0.6%. Turnover was Rs. 798 million involving 27 million shares.

Up to Wednesday, the ASPI was down 3.6% and S&P SL20 by 5.4%.

During the week, the ASPI and the S&P SL20 lost 0.9% and 0.7% respectively whilst recording an average daily turnover of Rs. 765 million.

Asia Securities said after twelve sessions of downward movement, the indices recovered ground with the ASPI reclaiming the 10,300 mark, helped by price increases in JKH (+1.5%), SAMP (+1.6%), DIST (+1.9%), DIAL (+2.3%), and SCAP (+3.1%). 

Moreover, there was notable buying activity in construction related stocks RCL (+5.1%), LWL (+4.4%), TILE (+4.5%), and ACL (+1.8%) during the session, underpinned by better-than-expected earnings reported by tile sector companies indicating early recovery signals in the construction industry. 

SAMP (+9 points), MELS (+9 points), JKH (+8 points), and RCL (+6 points) ended as the biggest contributors to the ASPI. The breadth of the market was positive with 97 price gainers and 63 decliners.

Turnover improved led by JKH (Rs. 200 million) and SAMP (Rs. 144 million) while off-board transactions in LFIN (Rs. 111 million) provided further support to turnover. 

Foreigners ended as net sellers due to outflows in SAMP (Rs. 92 million) and JKH (Rs. 71 million). 

First Capital said the Bourse closed in the green zone for the first time in over 3 weeks, as investors capitalised on bargain prices. Material sector contributed positively during the 1st half of the day with renewed investor interest whilst revitalised investor activity was also observed on the banks and blue chips following the steep price reductions seen during the previous few sessions.

It said JKH was the top contributor to the ASPI gain during the day, as JKH price fell to a 5-month low of Rs. 178.75, which provided added incentive for the investors to buy in to the share. Turnover was recorded 12% lower than the month’s average of Rs. 902.4 million. Foreign investors however, remained net sellers with a net foreign outflow of Rs. 200.8 million.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, LB Finance and Distilleries. Mixed interest was observed in Sampath Bank, Expolanka Holdings and Commercial Bank whilst retail interest was noted in Industrial Asphalts, SoftlogicCapital and Dialog Axiata.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 1.44%. The share price of John Keells Holdings increased by Rs. 2.75 to Rs. 181.50.

The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank) whilst the sector index increased by 0.50%. The share price of Sampath Bank gained Rs. 1.10 to Rs. 68.10.

LB Finance, Expolanka Holdings and Distilleries were also included amongst the top turnover contributors. The share price of LB Finance moved down by 50 cents to Rs. 62.00. The share price of Expolanka Holdings recorded a loss of 75 cents to Rs. 132.25. The share price of Distilleries appreciated by 50 cents to Rs. 26.50.