Colombo stock market gains ahead of Presidential poll

The Colombo stock market yesterday gained ahead of today’s decisive Presidential election and consolidated its year to date positive return. 

During the week the benchmark ASPI gained by 2.7% and the active S&P SL 20 by 4.1%. The closing helped ASPI to show a year to date positive return of 2.93% and the S&P SL20 by 1.10% as against negative return of 0.82% and 4.66% as at 12 September. 

Yesterday the ASPI gained by 0.75% and the S&P SL20 by 1.3%. Turnover was Rs. 1.4 billion involving 43.8 million shares. For the week, the turnover averaged Rs. 1.19 billion.

Asia Securities said the indices ended in green ahead of the presidential election, boosted by gains in the banking sector, with notable price increases in COMBN (+4.0%), NDB (+3.1%), and HNBN (+2.7%). Moreover, gains in LOFC (+1.9%), DIAL (+1.1%), and JKH (+0.9%) drove a broad-based rally during the session. COMBN (+24 points), HNBN (+14 points), NDB (+7 points) came in as the major index movers for the day. The market breadth was positive with 99 price gainers and 66 decliners.

Turnover was led by HNBN (Rs. 461 million), COMBN (Rs. 152 million) and SAMP (Rs. 73 million). Foreigners recorded a net outflow of Rs. 12.1 million. Net foreign buying topped in CTC at Rs. 3 million and selling topped in DIAL at Rs. 5.5 million.

First Capital said the completion of the EDR boosted investor sentiment, leading the Colombo Bourse to close in green for the 4th consecutive day, ahead of tomorrow’s Presidential Election. 

The market started the session on a bullish note and reached an intraday high of 10,990 in the first few minutes. Thereafter profit-taking occurred in the initial hour and the index experienced sideways movement until post midday. However, the index rebounded quickly in the final trading hour and closed the week at 10,967, gaining 82 points. 

The Banking sector counters, and blue-chip stocks contributed to the index mostly where COMB, HNB, NDB, MELS and JKH emerged as the top positive contributors to the index. Moreover, the index gained 2.7%WoW amidst the cautious sentiment of the investors. 

The Banking sector solely contributed 61% to the overall turnover whilst the Capital Goods and Diversified Financials sectors jointly contributed 18% to the total turnover. 

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank and Sampath Bank. Mixed interest was observed in Commercial Bank, Nations Trust Bank and Hemas Holdings whilst retail interest was noted in LOLC Finance, Browns Investments and Dialog Axiata. 

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Commercial Bank, Sampath Bank and Nations Trust Bank) whilst the sector index gained 2.31%. The share price of Hatton National Bank increased by Rs. 4.50 to Rs. 168.75. The share price of Commercial Bank gained Rs. 3.40 to Rs. 88.40. The share price of Sampath Bank moved up by 40 cents Rs. 72.60. The share price of Nations Trust Bank recorded a gain of Rs. 1.75 to Rs. 116.00.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hemas Holdings) whilst the sector index increased by 0.61%. The share price of Hemas Holdings declined by 30 cents to Rs. 72.50.