CSE sustains new-found optimism to close week on the up

The Colombo stock market yesterday sustained its new-found optimism ending the week on the up.

During the week the ASPI and the S&P SL20 gained 0.9% and 0.5% respectively. Daily turnover average was Rs. 979 million.

Last week both indices lost nearly 1% and turnover averaged Rs. 765 million.

On Friday, the ASPI gained by 0.5% and the S&P SL20 by 0.3%. Turnover was Rs. 1.4 billion involving 46 million shares.

Asia Securities said market continued its recovery momentum on as the ASPI stayed in green for a fourth session supported by price gains in NTBN (+1.5%), SAMP (+1.1%), LIOC (+2.5%), CALT (+7.8%), and HAYC (+2.6%). Furthermore, a pick-up in activity was witnessed in COCR (+12.6%) underpinned by a stronger-than-expected earnings results for the December quarter. 

The breadth of the market was positive with 90 price gainers and 61 decliners.

Turnover was led by off-board transactions in LFIN (Rs. 254 million) and CFLB (Rs. 171 million). 

Foreigners recorded a net outflow of Rs. 157.5 million. Net foreign buying topped in TAFL.N at Rs. 2.5 million and selling topped in JKH at Rs. 57.4 million.

First Capital said the bourse exhibited a bullish run throughout the day, concluding positively at 10,431 for the 4th consecutive session, reflecting a notable gain of 55 points. The banking sector counters, notably NDB, SAMP, SEYB, and HNB, spearheaded the index as investors chose to capitalise on discounted prices of these counters. On the contrary, blue-chip stocks such as JKH and HAYL exerted a drag on the index. Trading activity was also observed in Non-Banking Financial Institution (NBFI) counters, with LFIN and COCR witnessing investor interest, buoyed by a decline in market interest rates. 

Turnover reached a 2-week high as opposed to the average of Rs. 735.6 million. Diversified Financials, capital goods, and the banking sector counters collectively contributed 71% to the overall turnover, underlining a diversified market activity. 

NDB Securities said high net worth and institutional investor participation was noted in LB Finance, The Colombo Fort Land and Building and Hela Apparel Holdings.

Mixed interest was observed in Nations Trust Bank, John Keells Holdings and Sampath Bank whilst retail interest was noted in Browns Investments, Lanka Milk Foods and LOLC Finance. 

The Diversified Financials sector was the top contributor to the market turnover (due to LB Finance) whilst the sector index gained 1.14%. The share price of LB Finance increased by 10 cents to Rs. 61.10.

The Capital Goods sector was the second highest contributor to the market turnover (due to The Colombo Fort Land & Building and John Keells Holdings) whilst the sector index decreased by 0.42%. The share price of The Colombo Fort Land & Building lost 60 cents to Rs. 29.30. The share price of John Keells Holdings recorded a loss of Rs. 1.75 to Rs. 178.25.

Nations Trust Bank and Sampath Bank were also included amongst the top turnover contributors. The share price of Nations Trust Bank moved up by Rs. 1.50 to Rs. 102.75. The share price of Sampath Bank appreciated by 80 cents to Rs. 70.90.