CSE indices manage gain but turnover slumps to 7-month low

The Colombo stock market managed to gain modestly yesterday but turnover fell to a new low as investor sentiment remained lacklustre.

The benchmark ASPI gained by 21 points or 0.17% whilst the active S&P SL20 was flat. For the week, ASPI lost 301.6 points (2.5%) and S&P SL20 lost 104.4 points (2.9%).

Turnover yesterday was Rs. 472.5 million involving just 21.5 million shares.

Asia Securities said the market closed the session in green) with the ASPI gaining 21 points (+0.2%), supported by HAYC (+2.7%), WATA (+2.5%), TJL (+0.8%), and LOLC (+0.4%).

Price gains in CTHR (+10 points), CDB (+4 points), and RCL (+4 points) supported the ASPI during the session, while HNB (-4 points), SFCL (-4 points), and LION (-3 points) were the biggest laggards. The market breadth was neutral with 80 price decliners and 81 gainers.

Turnover was led by VONE (Rs. 46 million), AEL (Rs. 27 million), and JKH (Rs. 25 million).

Foreigners recorded a net inflow of Rs. 17.8 million. Net foreign buying topped in HAYC at Rs. 13.3 million and selling topped in LLUB at Rs. 6.4 millon.

First Capital said the broader market witnessed sideways movements and closed both indices in green as investors chose to adopt a wait-and-see approach amidst uncertainties surrounding the political environment in the country.

“Despite the recent confirmation of the ISB debt deal, investor sentiment remain cautious regarding its prospective market implications, with participation of foreign investors and HNWIs turned subdued after several sessions, despite the increased participation of retail investors,” First Capital said.

The Capital Goods sector counters such as RCL and HAYL, along with CTHR, CDB and LIOC majorly contributed to the index positively whereas investor sentiment towards the Banking sector counters remained mixed. Accordingly, ASPI closed the week at 11,947, gaining 21 points.  Turnover fell to a 7-month low and 74% lower than the month’s average. The Capital Goods sector contributed 30.5% to the overall turnover, whilst the Banking and Food, Beverage and Tobacco sectors jointly contributed 30.8% to the overall turnover.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Vallibel One, Access Engineering and Hatton National Bank nonvoting whilst retail interest was noted in UB Finance Company, Browns Investments and People’s Leasing & Finance.

The Capital Goods sector was the top contributor to the market turnover (due to Vallibel One, Access Engineering, John Keells Holdings and Hayleys) whilst the sector index gained 0.21%. The share price of Vallibel One decreased by 80 cents to Rs. 50.60. The share price of Access Engineering closed flat at Rs. 23.20. The share price of John Keells Holdings closed flat at Rs. 203.50. The share price of Hayleys appreciated by 75 cents to Rs. 102.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank nonvoting) whilst the sector index decreased by 0.15%. The share price of Hatton National Bank nonvoting closed flat at Rs. 158.