CSE opens fresh week mixed as investors take a breather after hectic trading last week

• New found interest on hotel sector stocks after 1H tourism earnings surge by 45% YoY to near $ 1 b

The Colombo stock market yesterday began the new week post bullish sessions on a mixed note though turnover was satisfactory reflecting investors remained active.

The benchmark ASPI gained by over 9 points and the active S&P SL20 declined by over 18 points. Last week the indices gained by 9% and 11.4% respectively. Turnover was Rs. 2.1 billion involving 103.2 million shares. Foreigners were net sellers after being net buyers for 11 consecutive sessions.  

Asia Securities said the market saw a mixed start to the week as investors opted to lock in profits in front-line stocks. The ASPI initially rose to 10,344 (+42 points), however saw a subsequent decline to 10,267 (-35 points) dragged by price declines in CALT (-2.3%), CFVF (-3.6%), FCT (-2.9%), RCL (-2.6%), HAYL (-2.2%), VONE (-2.1%), LLUB (-2.3%), ALUM (-2.9%), PARQ (-2.9%), COMBN (-1.0%), and SAMP (-2.4%). 

However, the index staged a steady recovery during the second half of the trading session and managed to close out on a positive note at 10,311 (+9 points).  The ASPI’s recovery was driven by price increases in GLAS (+3.3%), CICN (+1.4%), SPEN (+2.2%), JKH (+1.5%), SCAP (+3.5%), LOFC (+1.7%), BIL (+1.6%), AGST (+3.6%), KOTA (+10.6%), and TKYON (+1.8%). The breadth of the market was positive with 134 price gainers and 72 decliners.

Turnover was led by MELS (Rs. 237mn), CALT (Rs. 121mn), and SPEN (Rs. 96mn). 

A net foreign outflow of Rs. 105mn was recorded for the day led by MELS (Rs 71mn) and JKH (Rs. 66mn). Net foreign buying topped in DIAL at Rs. 15.5mn

First Capital said the Bourse continued to remain in the green zone for the 6th consecutive session, after notching a gain of 9.1% during the previous week. Following the record-breaking sessions last week, with the index surpassing the 10,000 level, market took a breather during the day amidst relatively low volumes compared to last week. 

While banking and treasury sector shares experienced profit-taking, there was a notable resurgence of investor engagement in undervalued mid-cap stocks throughout the day. Moreover, there was a surge in investor interest on the hotel sector counter after CBSL revealed that tourism earnings in 1H2023 reached $ 986.2Mn, marking an impressive 45.1% YoY increase. 

NDB Securities said high net worth and institutional investor participation was noted in Aitken Spence Holdings, Melstacorp, and John Keells Holdings. Mixed interest was observed in Capital Alliance, Softlogic Capital and Agstar whilst retail interest was noted in Browns Investments, Kotagala Plantations, and LOLC Finance. 

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Melstacorp) whilst the sector index gained 0.40%. The share price of Melstacorp increased by 60 cents to Rs 69.80.

The Capital Goods sector was the second highest contributor to the market turnover (due to Aitken Spence and John Keells Holdings) whilst the sector index increased by 0.40%. The share price of Aitken Spence moved up by Rs 2.75 to Rs 130. The share price of John Keells Holdings recorded a gain of Rs 2.25 to Rs 157.25.

Capital Alliance and Softlogic Capital were also included among the top turnover contributors. The share price of Capital Alliance lost Rs 1.10 to Rs 46.30. The share price of Softlogic Capital appreciated by 40 cents to Rs 11.70.