CSE shows resilience amidst profit taking

The Colombo stock market yesterday showed resilience amidst profit taking which dragged the indices down in early trades but recovered subsequently amidst healthy turnover.

The benchmark ASPI finished the day with 52 points or 0.4% up and the active S&P SL20 gained by 0.1% or 6 points. Turnover was Rs. 3.8 billion, falling below Rs. 4 billion achieved in the past two sessions. Volume of shares traded was 167 million.

Asia Securities said following a bout of profit-taking, the market picked up momentum in the second half of the session with the ASPI closing in green for a sixth straight session and scaling a new two-year high at 12,363 (+52 points). 

JINS (+6.8%) saw notable investor interest during the session underpinned by the Company’s dividend announcement (Final dividend of Rs. 13.24 per share). Furthermore, price gains in BIL (+3.1%), LFIN (+2.1%), CIC (+2.2%), CFIN (+4.0%), and CALT (+3.7%) supported the ASPI during the session. The breadth of the market was positive with 124 price gainers and 81 decliners.

Off-board transactions accounted for 26% of turnover led by JKH (Rs. 398 million), LIOC (Rs. 294 million), and RCL (Rs. 165 million).

Asia also said Foreigners recorded a net outflow of Rs. 411.1 million. Net foreign buying topped in COMB.N at Rs. 17.6 million and selling topped in JKH at Rs. 371.6 million.

First Capital said the bourse saw another day of gains with positive investor sentiment, continuing to propel its course in an upward trajectory. The market experienced a dull start at the beginning of the day but gradually picked up its momentum by mid-day. The ASPI closed at 12,363, continuing the trends of the previous day in reaching its highest levels since February 2022 and marking a 0.42% increase from the previous day to which the largest contributors were CFIN, LION, BIL, CTC, and JKH, where CFIN and LION led the way. 

While investor sentiment remained strong, there was a contrast in trends from the previous week reflecting a significant contribution from blue chip firms and the NBFI sector. 

The Capital Goods sector led turnover at 33%, followed by the Food, Beverage and Tobacco sectors contributing to 13% of turnover. 

The market overall saw a day of gentle gains continuing its positive momentum led by blue chip firms, First Capital added. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Lanka IOC and Royal Ceramics. Mixed interest was observed in Janashakthi Insurance, Browns Investments and CIC Holdings whilst retail interest was noted in SMB Leasing Voting and Non-Voting, RIL Property and LOLC Finance. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Royal Ceramics) whilst the sector index gained 0.61%. The share price of John Keells Holdings increased by one Rupee to Rs. 209.50. The share price of Royal Ceramics moved up

by 30 cents to Rs. 33.60.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 1.49%. The share price of Browns Investments appreciated by 20 cents to Rs. 6.60.

Lanka IOC and Janashakthi Insurance Company were also included amongst the top turnover contributors. The share price of Lanka IOC gained by one Rupee to Rs. 132.75. The share price of Janashakthi Insurance recorded a gain of Rs. 3.40 to Rs. 53.20.