Dismal week at CSE as investor sentiment remains lacklustre

The Colombo stock market witnessed a dismal week despite indices gaining on Friday.

During the week the benchmark ASPI declined by 0.9% and the active S&P SL20 by 1.5%. Average daily turnover was Rs. 627 million.

Asia Securities said on Friday the indices closed the week in green with the ASPI gaining 42 points (+0.4%) and the S&P SL20 index increasing 19 points (+0.6%), supported by price increases in LOFC (+3.4%), DIPD (+2.5%), COMBN (+2.2%), COCR (+1.3%) and HAYL (+2.0%). COMBN (+13 points), BUKI (+6 points), and HAYL (+6 points) came in as the major index movers for the day while CINSN (-12 points), and CDBN (-4 points) were the biggest laggards. The market breadth was positive with 90 price gainers and 52 decliners.

Turnover amounted to Rs. 653 million led by JKH (Rs. 110 million) and MELS (Rs. 104 million). Market saw a net foreign outflow of Rs. 101 million due to net foreign selling in JKH (Rs. 66 million) and SAMP (Rs. 47 million). 

First Capital said the bourse experienced gentle gains amidst a slight upturn in market activity and increased positive investor sentiment. 

The ASPI closed at 11,844, marking a 0.35% increase from the previous day, to which the most significant contributors were COMB, BUKI, HAYL, CTC, and LOLC, where COMB and BUKI led the way. The inflow of positive sentiment can be attributed to the presence of bargain buying as a result of a decline in prices. Heightened activity was displayed primarily amongst blue-chips JKH and HAYL, and banks. The Capital Goods sector led turnover at 31.9%, followed by the Food, Beverage and Tobacco, and the Banking sectors jointly contributing 42.3% of overall turnover. The market overall, saw a day of positive sentiment amidst a gradual increase in momentum.

NDB Securities said high net worth and institutional investor participation was noted in Greentech Energy, Hatton National Bank and John Keells Holdings. Mixed interest was observed in Hayleys, Commercial Bank, and Commercial Credit and Finance, whilst retail interest was noted in LOLC Finance, Browns Investments and Blue Diamonds Jewellery Worldwide.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index gained 0.22%. The share price of John Keells Holdings closed flat at Rs. 194.50. The share price of Hayleys recorded a gain of Rs. 2 to Rs. 101.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp) whilst the sector index increased by 1.09%. The share price of Melstacorp closed flat at Rs. 85.

Hatton National Bank and Commercial Bank were also included amongst the top turnover contributors. The share price of Hatton National Bank moved down by 25 cents to Rs. 195. The share price of Commercial Bank appreciated by Rs. 2.25 to Rs. 103.50.