Colombo stock regains after five-day losing streak

The Colombo stock market yesterday gained ending five consecutive days of losses as investor sentiment appeared to have recovered.

The benchmark ASPI yesterday gained by over 23.1 points or 0.2% while the active S&P SL20 was up by over 5 points or 0.1%. For the week ASPI and the S&P SL20 lost 0.5% and 1% respectively. Turnover on Friday was Rs. 2 billion involving 46 million shares.

Asia Securities said the market concluded the week on a positive note as the indices closed in green after five sessions of downward momentum. Capital goods, food, beverage & tobacco, banks and materials sectors led activity, collectively accounting for 86.0% of turnover.

MGT (+3.6%), JAT (+2.8%), DIPD (+2.1%) and HAYL (+3.6%) saw steady buying interest from the investors. TJL (+4 points) came in as the major driver of the ASPI for the day, followed by HNB (+4 points) and SAMP (+4 points). The breadth of the market was positive with 80 price gainers and 73 decliners.

Turnover was led by JKH (Rs. 981 million), MELS (Rs. 195 million) and DIPD (Rs. 137 million). Foreigners generated a net inflow of Rs. 278 million due to net buying in JKH (Rs. 327 million). 

First Capital said the bulls charged ahead on Thursday with the ASPI closing in the green at 12,249, gaining 23 points, marking its first positive finish in over a week. This was driven by bargain hunting in banking counters, primarily SAMP and HNB. The apparel sector counters also made significant contributions, with TJL attracting a foreign inflow of Rs. 1 million and MGT contributing 2.9% to the overall turnover. Despite muted retail participation, crossings accounted for 55.6% of the market turnover, led by banking and blue-chip counters. JKH stood out, contributing 47.5% of the total turnover backed by foreign buying amounting to Rs. 327.2 million. 

NDB Securities said crossings were witnessed in John Keells Holdings, Melstacorp, Nations Trust Bank accounting for 55.6% of the turnover. Mixed interest was observed in Dipped Products, Hayleys Fabric and Hayleys whilst retail interest was noted in Amana Bank, SMB Leasing and hSenid Business Solutions. Furthermore, foreigners remained active closing as net buyers.

Capital Goods sector was the top contributor to the market turnover (John Keells Holdings) whilst the sector index edged down by 0.08%. The share price of John Keells Holdings decreased by one Rupee to Rs. 202.

Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (Melstacorp) whilst the sector index edged down by 0.11%. The share price of Melstacorp edged up by 10 cents to Rs. 87.10.

Dipped Products, Hatton National Bank and Hayleys Fabric were also included amongst the top turnover contributors.

The share price of Dipped Products moved up by 80 cents to Rs. 39.70. The share price of Hatton National Bank recorded a gain of Rs. 1.25 to Rs. 201.00. The share price of Hayleys Fabric appreciated by Rs. 1.60 to Rs. 46.60