CSE manages to close on the up amidst low activity

The Colombo stock market yesterday managed to close on the up albeit after a struggle amidst low investor activity.

The benchmark ASPI gained by 0.4% or 46 points and S&P SL20 by 0.3% or 9 points. Turnover was Rs. 874.3 million involving 33.8 million shares. The market also saw net foreign outflow.

Asia Securities said following two sessions of downward momentum, the indices edged higher on Wednesday supported by price gains in primary dealers in CALT (+3.1%), CFVF (+5.8%), and FCT (+5.5%). In addition, CFIN (+6.5%), TKYON (+4.4%), and LHCL (+4.0%) saw sizable gains during the session. 

The ASPI initially dropped below the 11,000 mark to reach a two-month low at 10,970 (-65 points). Nevertheless, the index recovered from its intra-day losses in the second half of the session and managed to close in green (+46 points), above the 11,000 mark at market close. CFIN (+10 points) came in as the highest contributor to the ASPI, followed by SAMP (+7 points) while CTHR (-10 points) ended as the biggest laggard on the index. The breadth of the market turned positive with 100 stocks gaining and 64 ending in red.

However, market activity remained moderate with daily turnover led by JKH (Rs. 168 million) and CALT (Rs. 150 million). 

Foreigners recorded a net outflow of Rs. 57.5 million. Net foreign buying topped in CALT at Rs. 6.5 million and selling topped in JKH at Rs. 54.4 million.

First Capital said the Bourse showcased lacklustre sentiment in the morning session, falling below the psychological barrier of 11,000 points in the morning, a level last seen in over two months since July 2023. However, the index regained its momentum as buying interest was rekindled, ultimately closing the day in green at 11,081 points, marking a gain of 46 points. 

The positive sentiment was also fuelled by the anticipation of a rate cut in the upcoming monetary policy review meeting. Treasury shares were particularly active in the market, driven by a decrease in the weighted average yields during T-bill auction and the expectation of a rate cut. The primary driver behind the index’s performance was the banking sector, whilst diversified financials and index-heavy weights also witnessed investor interest during the day. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Melstacorp, and Dialog Axiata. Mixed interest was observed in Capital Alliance, First Capital Holdings and National Development Bank whilst retail interest was noted in UB Finance Company, Softlogic Capital and Browns Investments. 

The Diversified Financials sector was the top contributor to the market turnover (due to Capital Alliance, First Capital Holdings and Softlogic Capital) whilst the sector index gained 2.40%. The share price of Capital Alliance gained Rs. 2.20 to Rs. 72.80. The share price of First Capital Holdings moved up by Rs. 2.60 to Rs. 47.70. The share price of Softlogic Capital recorded a gain of 20 cents to Rs. 11.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index edged down by 0.06%. The share price of John Keells Holdings decreased by one rupee to Rs. 190.

Melstacorp was also included amongst the top turnover contributors. The share price of Melstacorp appreciated by 30 cents to Rs. 83.30.