Colombo stock market begins 2024 on the up with subdued activity in contrast to 2023

The Colombo stock market began 2024 on the up though investor activity was dismal evoking mixed sentiments over the first trading of the New Year.

Turnover amounted to only Rs. 335.5 million involving 15 million shares. In contrast, last year’s first day’s trading generated Rs. 1.87 billion turnover involving 131 million shares, impressive liquidity given the unprecedented crisis situation.

In terms of the performance of the indices, yesterday the benchmark ASPI saw a 30 point gain or 0.3% and the active S&P SL20 managed a 16 point gain or 0.5%. This however was better than last year’s opening – ASPI was up 20 points or 0.2% and S&P SL20 up five points or 0.19%.

The market ended 2023 with the ASPI up 25.5% and S&P SL20 by 16.4%. The average daily turnover amounted to Rs. 1.7 billion.

Asia Securities said the market kicked off 2024 on a positive note amidst subdued activity. Price increases in CTC (+4.2%), COMBN (+1.5%), COMBX (+1.6%), ACL (+1.7%), HAYL (+2.8%), and HAYC (+2.8%) contributed to the upward movement of the ASPI during the session. Conversely, EXPO (-1.0%), RCL (-1.1%), CFVF (-1.8%), LOFC (-2.2%), and FCT (-1.2%) exerted downward pressure on the index. CTC (+12 points), COMBN (+9 points), and MELS (+8 points) emerged as the major index movers for the day. The breadth of the market was positive with 86 price gainers and 74 decliners.

Turnover was led by EXPO (Rs. 29 million), CTC (Rs. 25 million), AMF (Rs. 24 million), and HNBN (Rs. 22 million).

Foreigners recorded a net outflow of Rs. 10.6 million. Net foreign buying topped in MGT.N at Rs. 3.6 million and selling topped in SAMP.N at Rs. 7.1 million.

First Capital said Bourse kicked off 2024 on a positive note and ended the day in the green zone, on the back of price appreciation in blue chip and banking counters such as CTC, MELS and COMB.

It said the index started off quite volatile but maintained an upward trend during the session, ending the day at a 30 point increase to 10,684. CTC and MELS were amongst the top contributors to the index gain, mainly due to price increases (above the Govt. directed tax increase) carried out by the company from 1 Jan 24, which is expected to positively boost turnover and margins of the respective companies.

NDB Securities said high net worth and institutional investor participation was noted in Ceylon Tobacco Company. Mixed interest was observed in Expolanka Holdings, Hatton National Bank and Sampath Bank whilst retail interest was noted in Industrial Asphalts, Associated Motor Finance Company and Browns Investments.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank nonvoting and Sampath Bank) whilst the sector index gained 0.67%. The share price of Hatton National Bank nonvoting recorded a gain of Rs. 30 (21.43%) to close at Rs. 170. The share price of Sampath Bank appreciated by 20 cents to Rs. 70.70.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Ceylon Tobacco Company) whilst the sector index increased by 0.73%. The share price of Ceylon Tobacco Company gained Rs. 39.75 to Rs. 993.50.

Expolanka Holdings and Associated Motor Finance Company were also included amongst the top turnover contributors. The share price of Expolanka Holdings decreased by Rs. 1.50 to Rs. 141.75. The share price of Associated Motor Finance Company moved up by 90 cents to Rs. 18.40.