CSE rebounds on improved investor sentiments

The Colombo stock market staged a comeback yesterday on improved investor sentiments, especially on the hotel counters.

The active S&P SL20 gained by 0.17% and the benchmark ASPI by 0.27% yesterday. Turnover was Rs. 1.75 billion involving 91.92 million shares.

Foreigners recorded a net inflow of Rs. 139.7 million while their participation increased to 15.4% of turnover (previous day 9.6%).

First Capital said the broad market experienced another day of market volatility as investors continued the sluggish stance during the day. In the morning hours, the market exhibited subdued sentiment, but the market began to recover by midday, fuelled by renewed interest in the Hotel sector counters. Additionally, selected plantation stocks, such as MASK and AGPL, attracted attention during the day compared to the previous day. 

Accordingly, the index closed the day in green at 12,290, gaining 33 points. DIAL, SPEN, DIPD, RCL, and BIL emerged as the top positive contributors to the index. Amidst the mixed participation from both retail and HNW investors, turnover stood at Rs. 1.8 billion, marking an 18.3% decrease from the monthly average standing at Rs. 2.1 billion. The Capital Goods sector led turnover at 16%, followed by the Telecommunication Services and Materials sectors jointly contributing 28% of overall turnover.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Dialog Axiata, Aitken Spence, and Dipped Products, with the turnover crossing Rs. 1.7 billion. A similar behaviour was witnessed in the S&P SL20. 

High net worth and institutional investor participation was noted in Dialog Axiata, John Keells Holdings, and Hemas Holdings. Mixed interest was observed in Digital Mobility Solutions Lanka, Dipped Products, and Maskeliya Plantations, whilst retail interest was noted in Nation Lanka Finance, Citrus Leisure, and Waskaduwa Beach Resort. Furthermore, foreigners closed as net sellers.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index edged up by 0.02%. The share price of John Keells Holdings recorded a loss of Rs. 0.75 to close at Rs. 195.75. The Telecommunication Services sector was the second highest contributor to the market turnover (due to Dialog Axiata) whilst the sector index increased by 0.48%. The share price of Dialog Axiata increased by Rs. 0.40 to close at Rs. 10.70.

Digital Mobility Solutions Lanka, Dipped Products, and Maskeliya Plantations were also included amongst the top turnover contributors. The share price of Digital Mobility Solutions Lanka gained Rs. 3.50 to close at Rs. 42. The share price of Dipped Products moved up by Rs. 1.70 to close at Rs. 38.70. The share price of Maskeliya Plantations appreciated by Rs. 5.80 to close at Rs. 56.20.