Colombo stock market turnover rises to 8-month high of Rs. 7 b

Thursday, 31 October 2024 05:15 - - {{hitsCtrl.values.hits}}

Transfers of Dr. T. Senthilverl’s strategic blocks 14% of Harischandra Mills and 10.7% of Swadeshi Industrial Works figure in key trading

The Colombo stock market yesterday saw its turnover reach an 8-month high as investor sentiment remained positive.

Turnover was Rs. 7 billion with Harischandra Mills (Rs. 1 billion), NDB (Rs. 663 million), Hayleys (Rs. 534 million), DFCC (Rs. 340 million) and PABC (Rs. 339 million) dominating value. Number of shares traded were 147 million whilst the indices gained by 0.2%.

First Capital said the broad market experienced another day of bullish momentum, driven by rising investor optimism, leading to a decline in risk premiums, and heightened participation from both retail and HNW investors.

The recently released 3Q2024 results of PABC and SEYB have bolstered positive sentiment towards the Banking sector, as investors continue to maintain their bullish outlook on Banking sector stocks. MELS, NDB, CFIN, HAYL and TKYO emerged as the top positive contributors to the index.

Amidst multiple crossings, turnover experienced a 76.6% increase from Tuesday and marked over a 100% increase monthly average.

Out of 15 off-board transactions, notable trades were recorded in HARI and SWAD, trading 13.9% and 10.7% stakes at Rs. 4,040.5/share and Rs. 15,003.5/share respectively.

The Banking sector led turnover by 34%, followed by the Food, Beverage and Tobacco and Capital Goods sectors jointly contributing 39% of the overall turnover. Foreign investors turned net sellers, with a net outflow of Rs. 111.5 million.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Melstacorp, National Development Bank and Central Finance Company.

High net worth and institutional investor participation was noted in Harischandra Mills, Hayleys and Swadeshi Industrial Works. Mixed interest was observed in National Development Bank, Pan Asia Banking Corporation and Access Engineering whilst retail interest was noted in Renuka Agri Foods, Prime Lands Residencies and LOLC Finance.

The Banking sector was the top contributor to the market turnover (due to National Development Bank, DFCC Bank and Pan Asia Banking Corporation) whilst the sector index edged up by 0.07%. The share price of National Development Bank gained Rs. 2.80 to Rs. 87.60. The share price of DFCC Bank recorded a gain of 70 cents to Rs. 85.10. The share price of Pan Asia Banking Corporation appreciated by one Rupee to Rs. 25.00.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Harischandra Mills) whilst the sector index increased by 0.67%. The share price of Harischandra Mills closed flat at Rs. 4,040.50.

Hayleys was also included amongst the top turnover contributors with its share price gaining Rs. 2 to Rs. 106.