CSE struggles to recover

Thursday, 6 October 2022 02:38 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday staged a recovery of sorts after being battered during the previous two sessions.

On a choppy day for the indices, the benchmark ASPI managed to close on the up by 0.9% or 82 points and the active S&P SL20 gained by 0.4% or over 12 points. Turnover was Rs. 2.6 billion involving 103 million shares.

Asia Securities said following two sessions of retail sell-off, the indices regained ground on yesterday supported by a modest recovery in frontline stocks SAMP (+2.4%), LIOC (+1.8%), EXPO (+1.0%), ACL (+4.6%), CICN (+7.0%), CICX (+5.6%), LOFC (+2.6%), and LLUB (+2.8%).

However, turnover declined from Rs. 4,541 million as investors remained on the sidelines, assessing the overall market sentiment. Earlier, the ASPI witnessed an upbeat start to the session crossing the 9,400-mark owing to a 165-point gap-up. After reaching an intra-day high of 9,438 (+201 points) in early trading, the index pared gains to slip back to 9,200 levels. However, the index saw another pickup in the last hour of trading to close above 9,300. Compared to the ASPI, the S&P SL20 index recorded a moderate session due to price losses in COMB (-2.4%), HELA (-2.6%), JKH (-0.4%), LOLC (-1.7%), and WATA (-1.6%). The breadth of the market turned positive with 149 price gainers and 54 decliners.

Asia also said foreigners recorded a net inflow of Rs. 12.1 million with net foreign buying most in LIOC at Rs. 15.7 million and selling in JKH at Rs. 37.2 million.

First Capital said the bourse rebounded to green following 4 consecutive losses with the index curtailing by over 700 points. Nevertheless, market bounced back with the index opening on an upbeat note gaining over 200 points and peaked to an intraday high of 9,442 during the initial hour as investors collected on beaten-down stocks. Moreover, despite some selling pressure witnessed through mid-session, index recouped previous losses and closed in the green at 9,319 gaining 82 points. However, turnover scaled lower compared to the last session as investors took a toned-down approach ahead of the monetary policy review meeting.

NDB Securities said high net worth and institutional investor participation was noted in People’s Leasing & Finance, John Keells Holdings and Chevron Lubricants. Mixed interest was observed in Lanka IOC, Expolanka Holdings and Dankotuwa Porcelain whilst retail interest was noted in Browns Investments, SMB Leasing (voting and nonvoting) and First Capital Holdings.

Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index gained 2.26%. The share price of Lanka IOC increased by Rs. 4.25 (1.80%) to close at Rs. 240.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 0.96%. The share price of John Keells Holdings recorded a loss of 50 cents to close at Rs. 130.

Expolanka Holdings, Dankotuwa Porcelain and First Capital Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 1.75 (1.00%) to close at Rs. 176.50. The share price of Dankotuwa Porcelain moved up by Rs. 6 (21.90%) to close at Rs. 33.40. The share price of First Capital Holdings appreciated by Rs. 2.50 (13.59%) to close at Rs. 20.90.