CSE sustains new-found momentum; foreign selling persists

The new-found optimism at the Colombo stock market persisted yesterday though at moderate levels whilst trading activities remained healthy.

The benchmark ASPI gained by 0.6% and the active S&P SL20 by 0.3%. Turnover was Rs. 2.8 billion involving 97.1 million shares. Foreigners remained net sellers to the tune of Rs. 132.4 million increasing the month-to-date outflow to Rs. 1.2 billion.

Asia Securities said the ASPI crossed the 9,300 mark briefly and reached an intra-day high of 9,321 (+105 points) in early trading, however witnessed consolidation in the range of 9,275-9,300 as the session progressed due to retail profit-booking in LOFC (-6.5%), LOLC (-2.7%), BIL (-3.4%), and FCT (-2.6%).

The Banking sector continued to witness positive momentum led by SAMP (+3.6%), HNBN (+1.3%), COMBN (+2.0%), and UBC (+2.1%). On the other hand, HAYL (+1.4%), LIOC (+1.2%), KHL (+5.3%), VONE (+4.0%), CCS (+3.1%), and SCAP (+1.1%) closed with notable gains during the session.

CINS (+23 points), SAMP (+17 points), and VONE (+16 points) came in as the highest contributors to the ASPI. Overall, 81 stocks recorded price gains while 89 settled with losses. 

Turnover improved led by SAMP (Rs. 1.6 billion), DIST (Rs. 137 million), and HNBN (Rs. 103 million). Crossings accounted for 53.3% of turnover with 3 crossings recorded in SAMPN (Rs. 1.4 billion), 1 crossing each in COMBN (Rs. 43.5 million), DIST (Rs. 22.5 million) and JKH (Rs 21.1 million).

Foreigners recorded a net outflow of Rs. 132.4 million. Net foreign buying topped in CCS.N at Rs. 22.5 million and selling topped in SAMP.N at Rs. 103.3 million.

First Capital said the Colombo bourse closed in the green zone amidst signs of volatility, gaining for the 6th consecutive session.

“The positive sentiments in the market were mainly due to the appreciation in the Banking sector counters and Insurance companies which had an uptick due to the speculations that DDR strategies will be in favour of the above stated counters,” it said.

Moreover, the retail sector took a breather and remained muted after a heavy session of gains yesterday, mainly due to profit taking.

Turnover surpassed Rs. 2.8 billion aided by the high-net-worth investor interaction railing the crossings board alongside contributions by the Banking sector (64%), Food, Beverage and Tobacco sector (9%), Diversified Financials sector (8%) respectively.

Despite the drop in treasury yields at the T-bill auction on Wednesday, treasury counters experienced a price drop during the day.

NDB Securities said crossings were witnessed in Sampath Bank, Commercial Bank, Distilleries and John Keells Holdings, accounting for 53.3% of the turnover.

Mixed interest was observed in Hatton National Bank, First Capital Treasuries and Hayleys whilst retail interest was noted in LOLC Finance, Tess Agro and Browns Investments.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank, Hatton National Bank and Commercial Bank) whilst the sector index gained 1.74%. The share price of Sampath Bank increased by Rs. 1.90 (3.58%) to Rs. 54.90. The share price of Hatton National Bank moved up by Rs. 1.75 to Rs. 137. The share price of Commercial Bank appreciated by Rs. 1.30 to Rs. 66.30.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Distilleries) whilst the sector index edged down by 0.04%. The share price of Distilleries gained 10 cents to Rs. 22.20.

First Capital Treasuries was also included among the top turnover contributors. The share price of First Capital Treasuries recorded a loss of 70 cents to close at Rs. 26.10