CSE stays on the up despite low investor activity

The Colombo stock market managed to stay on the up amidst low investor activity and net foreign outflow.

The active S&P SL20 gained by 1% and the benchmark ASPI by 0.9%. Turnover was Rs. 2.7 billion involving 75 million shares.

Asia Securities said the indices trended upwards supported by price increases in HN BILLION (+4.7%), CFIN (+4.5%), CICN (+2.7%), JKH (+2.1%), MGT (+2.1%), COM BILLION (+1.8%), AHUN (+1.8%), and SCAP (+0.9%). CCS (-1.0%), DIST (-1.2%), DIAL (-1.8%), and HAYL (-2.0%) settled with losses. 

HN BILLION (+23 points) came in as the biggest index mover during the session, followed by COM BILLION (+12 points), JKH (+12 points), and CFIN (+8 points). Overall, 110 stocks climbed higher while 83 settled with price losses.

Turnover was led by JKH (Rs. 389 million), CFIN (Rs. 285 million), and CALT (Rs. 170 million). 

The market saw a net foreign outflow of Rs. 85.4 million led by JKH (Rs. 89 million), HHL (Rs. 3.8 million), and CINSX (Rs. 3.6 million). Net foreign buying topped in COMB.N at Rs. 7.1 million.

First Capital said the Bourse extended its streak of price gains for the third consecutive session while recording a solid 100 points gain as investors hunted down Banks (mainly HNB, COMB and SAMP) and Diversified financial counters following the price declines witnessed during the previous week. Hence, index started off on a solid footing and maintained its steady upward trajectory throughout the session and hit an intraday high of 11,519 before closing the day at 11,475, gaining 100 points. ASPI was mainly topped by Banks and Blue-chip counters amidst the improved investor appetite, while a sharp rally was witnessed on the Treasury counters ahead of the weekly T-Bill auction scheduled for today. 

In the midst of active retail participation, turnover was backed by Diversified Financials and Capital Goods sectors accounting for a joint contribution of 49%. In the midst of the selling spree on JKH, foreign investors remained net sellers during the day yet, YTD net foreign inflow remained above Rs. 4 billion mark.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Central Finance Company and Aitken Spence. Mixed interest was observed in Capital Alliance, Commercial Bank and CIC Holdings whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting and Agarapatana Plantations. 

The Diversified Financials sector was the top contributor to the market turnover (due to Central Finance Company and Capital Alliance) whilst the sector index gained 1.33%. The share price of Central Finance Company gained Rs. 5.75 to Rs. 132.25. The share price of Capital Alliance moved up by Rs. 4.90 to Rs. 90.80.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 0.98%. The share price of John Keells Holdings increased by Rs. 4 to Rs. 191.

Commercial Bank and CIC Holdings were also included amongst the top turnover contributors. The share price of Commercial Bank recorded a gain of Rs. 1.70 to Rs. 95. The share price of CIC Holdings appreciated by Rs. 1.90 to Rs. 73.