CSE sustains positive run; low turnover a concern

• Speculation on business tycoon Dhammika Perera entering Parliament props counters such as RCL, VONE and HAYL

The Colombo stock market sustained its positive run though low turnover has sparked concern in terms of overall investor enthusiasm. 

The active S&P SL20 Index gained by over 1.5% and the benchmark ASPI improved by 1.4%. Turnover was a new recent low of Rs. 917 million involving 47 million shares. 

Asia Securities said indices gained largely driven by price gains in RCL (+10.5%), VONE (+20.1%), HAYL (+6.6%), VFIN (+16.0%), PARQ (+14.4%), and DIPD (+6.5%). 

It said frontline stocks EXPO (+0.8%), BIL (+2.3%), LOFC (+2.6%), and LOLC (+2.1%) also ended higher in line with the benchmark indices. The ASPI initially opened trading with a gap-up of 97 points at 7,870 and continued upward momentum throughout the session. 

The index touched an intra-day high of 7,909 (+136 points) at the back end of the session before settling at 7,881 (+108 points). EXPO topped the turnover list, generating a turnover of Rs. 152 million, followed by VONE (Rs. 117 million), and LIOC (Rs. 74 million). The breadth of the market ended positive with 122 price gainers and 52 decliners.

Asia also said foreigners recorded a net inflow of Rs. 2.6 million while their participation remained flat at 1.3% of turnover (previous day 5.3%). Net foreign buying topped in BALA at Rs. 2.7 million and selling topped in HNB.N at Rs. 2.7 million.

First Capital said the Bourse thrived in green for the second consecutive session as investors gained positive signs on the political front predominantly on the progress of the long discussed 21st Amendment. 

Index opened on an upsurge and continued to remain high throughout the session backed by rumours surfaced on business tycoon Dhammika Perera entering Parliament, counters such as RCL, VONE and HAYL which are owned by him contributed massively to the surge in the ASPI as the index closed for the day at 7,881 gaining 108 points. However, turnover was at a one-month low while it was led by the Capital Goods sector and Transportation sector accounting for a joint contribution of 48%. 

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank. Mixed interest was observed in Expolanka Holdings, Lanka IOC, and Royal Ceramics whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting and Vallibel One. 

The Capital Goods sector was the top contributor to the market turnover (due to Vallibel One and Royal Ceramics) whilst the sector index gained 1.90%. The share price of Vallibel One gained Rs. 5.70 (20.07%) to close at Rs. 34.10. The share price of Royal Ceramics recorded a gain of Rs. 2.80 (10.49%) to close at Rs. 29.50.

Transportation sector was the second-highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index increased by 0.77%. The share price of Expolanka Holdings increased by Rs. 1.50 (0.77%) to close at Rs. 196.25.

Lanka IOC and Browns Investments were also included among the top turnover contributors. The share price of Lanka IOC moved down by Rs. 1.10 (1.67%) to close at Rs. 64.80. The share price of Browns Investments appreciated by 20 cents (2.30%) to close at Rs. 8.90.