CSE tops 11,000 points mark after 16 months; net foreign buying returns

The Colombo stock market remained robust with indices clinging to gains amidst healthy turnover.

The benchmark ASPI gained by 0.9% thereby crossing the 11,000 points mark after 16 months and the active S&PSL20 by 0.6%. Turnover was Rs. 4.17 billion involving 156.5 million shares. Foreigners returned to net buying mode as well.

Asia Securities said the market continued its strong rally with the ASPI breaking through the 11,000 level, for the first time since March 2022, mainly driven by price gains in CINS (+4.0%), EXPO (+5.8%), SPEN (+5.4%), DFCC (+2.0%), SCAP (+7.2%), SUN (+2.3%), MELS (+3.9%), LIOC (+1.6%), and PLC (+5.0%). 

It said the ASPI commenced the session on a highly positive note and touched a high of 11,033 (+106 points) in mid-afternoon trading. However, the index took a sharp downturn to 10,926 due to price losses in NTBN (-3.4%), VONE (-1.4%), COMBN (-1.2%), HAYL (-1.0%), BIL (-1.5%), CFVF (-1.9%), CTC (-1.7%), and LOFC (-1.7%). Nevertheless, the index saw a sharp recovery towards the end of the session to close in at 11,027 (+100 points). 

CINS (+16 points), EXPO (+15 points), and SPEN (+15 points) ended as the biggest index movers while COMBN (-8 points) came in as the major index dragger. The breadth of the market remained positive with 112 price gainers and 90 decliners.

Market turnover was boosted by SPEN (Rs. 251million), DFCC (Rs. 245million), NTBN (Rs. 182million), and LIOC (Rs. 181million).

Asia also said foreigners recorded a net inflow of Rs. 163.4 million. Net foreign buying topped in SPEN at Rs. 156 million and selling topped in DFCC at Rs. 10.4million.

First Capital said the ASPI once again registered a record trading session as the ASPI crossed the 11,000 psychological barrier for the first time in over a year as the index closed at 11,027 gaining 100 points. 

It said the index opened positively and remained solidly in the green during the first half of the session led by EXPO which gathered interest following the dividend announcement that was made yesterday. However, by mid-day the index tumbled and dropped to an intraday low of 10,916 but gradually picked up as investors set on a buying spree. 

During the day SPEN scaled high following sizable foreign interest while activities were witnessed on blue chips as well. However, banking counters dipped low over profit booking while treasury counters enticed mixed interest. 

NDB Securities said high net worth and institutional investor participation was noted in Cargills, CIC Holdings, and Distilleries. Mixed interest was observed in Aitken Spence, DFCC Bank, and Nations Trust Bank whilst retail interest was noted in LVL Energy Fund, Softlogic Capital, and Renuka Agri Foods. 

The Banking sector was the top contributor to the market turnover (due to DFCC Bank and Nations Trust Bank ) whilst the sector index edged down by 0.05%. The share price of DFCC Bank gained Rs 1.50  to Rs 75. The share price of Nations Trust Bank moved down by Rs 3.20 to Rs 91.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to Aitken Spence) whilst the sector index increased by 0.70%. The share price of Aitken Spence increased by Rs. 7.75 to Rs 150.

Lanka IOC and Softlogic Capital were also included among the top turnover contributors. The share price of Lanka IOC recorded a gain of Rs 2.25to Rs 145.25. The share price of Softlogic Capital appreciated by 80 cents to close at Rs 11.90.