CSE gains on Friday but ends week with loss

The Colombo stock market gained on Friday with an apparent rebound in investor sentiment but finished the week with losses following sharp dips earlier on.

During the week the ASPI and the S&P SL20 lost 1.5% and 1.1% respectively whilst recording an average daily turnover of Rs. 977 million. In the previous week the ASPI gained by 38 points (+0.35%) while the S&P SL20 edged 8 points (0.27%) higher. Turnover averaged Rs. 1 billion compared to Rs. 972 million in the previous week.

Asia Securities said the indices returned to positive territory on Friday supported by price increases in CALT (+9.1%), MGT (+7.3%), SAMP (+5.3%), TKYON (+6.1%), CCS (+3.4%), PABC (+2.7%), EXPO (+2.4%) and DIST (+2.0%). On the other hand, TJL (-1.2%), HHL (-1.8%) and DIAL (-2.1%) closed lower. SAMP (+26 points), HNB (+14 points), and LIOC (+10 points) came in as the biggest index movers for the day. Overall, 116 stocks ended in green, while 43 closed with losses.

Turnover was led by JKH (Rs. 116 million), CFVF (Rs. 50 million), and EXPO (Rs. 40 million).

Asia also said foreigners recorded a net inflow of Rs. 88.8 million. Net foreign buying topped in JKH at Rs. 56.6 million and selling topped in LIOC at Rs. 4.5 million.

First Capital said the Bourse recouped earlier session losses and settled firmly in the green zone, gaining 153 points as investors started bargain hunting across the board following the price declines witnessed during the previous 3-sessions.

In response to that, the index started off on a solid footing and maintained its steep upward trajectory throughout the session and closed for the day at 10,690, gaining 153 points. Buoyed by optimism, investor sentiment improved on major banks mainly, SAMP, HNB and COMB while retail participation was reactivated on LIOC as the Govt. renewed the petroleum license for another 20 years.

Treasury counters saw increased buying sentiment as the WAYR of the mid to long tenors surged in the secondary market. On the flip side, lingering selling pressure on CFVF negatively contributed to the ASPI as the dividend of Rs. 12.25 per share reached the XD date.

Despite the market being positive, investors remained on the side-lines displaying thin volumes ahead of the upcoming Budget reading for 2024. In the midst of low volumes, turnover was 31% lower from monthly average turnover of Rs. 958.7 million and was largely led by Capital Goods (26%) and Diversified Financials (23%) sectors.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in First Capital Holdings, Expolanka Holdings and Capital Alliance whilst retail interest was noted in Industrial Asphalts, LOLC Finance and Softlogic Capital.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 1.01%. The share price of John Keells Holdings increased by one Rupee to close at Rs. 192.50.

The Diversified Financials sector was the second highest contributor to the market turnover (due to First Capital Holdings and Capital Alliance) whilst the sector index increased by 1.28%. The share price of First Capital Holdings lost Rs. 8.70 to Rs. 33.30. The share price of Capital Alliance recorded a gain of Rs. 4.50 to Rs. 53.80.

Expolanka Holdings and Hayleys Fabric were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved up by Rs. 3 to Rs. 128.25. The share price of Hayleys Fabric appreciated by Rs. 3.10 to Rs. 45.80.