Colombo stock market manages to close marginally up amidst erratic sentiments

The Colombo stock market yesterday had an erratic day in terms of sentiments but managed to close on the up amidst improved turnover.

The benchmark ASPI finished trading with a 0.2% gain and the active S&P SL20 by 0.4%. Turnover improved from Rs. 1.6 billion on Wednesday (26) to Rs. 2.14 billion involving 47.4 million shares. 

Despite the CSE-SEC Investor Forum yesterday with over 100 foreign investors and funds in attendance in Colombo, the market saw a marginal foreign net outflow of Rs. 2.4 million.

First Capital said the market experienced a slight upward movement with a turnover of 1.8% below the monthly average. The total number of trades was notably low, with around 9,000 transactions taking place. Over 59.4% of the turnover came from crossings, highlighting significant participation from HNW investors. A major portion of the turnover was driven by LCEY, which accounted for Rs. 1.1 billion. 

“The market showed high volatility throughout the day, initially rising in the morning but fluctuating significantly during the latter half,” First Capital said. The positive contributors included HNB, SAMP, COMB, JKH, and BUKI. The Capital Goods sector was the largest contributor to turnover, accounting for 59%, followed by the Banking and Food, Beverage and Tobacco sectors, which jointly contributed 25%. 

Asia Securities said the indices closed in green supported by price increases in LIOC (+1.4%), PABC (+1.4%), HNBN (+0.9%), and NDB (+0.7%). HNBN (+7 points) and SAMP (+5 points) came in as the major index movers for the day. The market breadth was positive, with 105 price gainers and 82 decliners.

Net foreign buying topped in TJL at Rs. 10 million and selling topped in SAMP.N at Rs. 22 million. 

NDB Securities said crossings were witnessed in Lankem Ceylon, Commercial Bank, and Teejay Lanka, accounting for 59.5% of the turnover. Mixed interest was observed in Sampath Bank, Hatton National Bank nonvoting, and Softlogic Life Insurance, whilst retail interest was noted in John Keells Holdings, Hela Apparel Holdings, and Browns Investments.

The Capital Goods sector was the top contributor to the market turnover (due to Lankem Ceylon and John Keells Holdings) whilst the sector index edged up by 0.02%. The share price of Lankem Ceylon increased by Rs. 2.30 to Rs. 84.50. The share price of John Keells Holdings gained Rs. 0.10 to Rs. 20.20.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank and Sampath Bank) whilst the sector index increased by 0.56%. The share price of Commercial Bank moved up by Rs. 0.75 to Rs. 147.75. The share price of Sampath Bank recorded a gain of Rs. 0.75 to Rs. 122.

Teejay Lanka was also included amongst the top turnover contributors, with its share price gaining by Rs. 0.10 to Rs. 51.10.