Investors at CSE gradually sustain new found optimism

Investors gradually sustained new found optimism helping the Colombo stock market to gain for the fifth consecutive day yesterday.

The active S&P SL20 gained by 1.3% and the benchmark ASPI by 1%. Turnover was Rs. 776 million down from Rs. 1.3 billion on Wednesday whilst 31 million shares traded.

Asia Securities said indices rebounded sharply, driven by improved market sentiment. The ASPI crossed the 11,500 mark in early trading and hovered in the range of 11,530-11,550 throughout the session. Banking counters saw steady buying during the session with HNBN (+1.1%), NDB (+1.6%), SAMP (+1.6%), NTBN (+1.9%), DFCC (+3.6%), and COMBN (+1.2%) leading the way. Front-line counters MGT (+1.2%), CIC (+1.0%), JKH (+1.1%), DIST (+3.1%), and PARQ (+2.5%) supported the ASPI during the session. 

SAMP (+9 points) provided the biggest boost to the ASPI, followed by CINS (+8 points) and COMBN (+8 points). Overall, 121 stocks recorded price gains during the session while 46 settled with losses.

Turnover was led by MELS (Rs. 95 million), HNBN (Rs. 66 million), and LMF (Rs. 39 million). 

Asia also said foreigners recorded a net outflow of Rs. 113.7 million. Net foreign buying topped in CIC.X at Rs. 1.3 million and selling topped in MELS.N at Rs. 85.4 million.

First Capital said the Colombo Bourse extended the positive momentum for the 5th consecutive session amidst active participation from retail investors. The investor sentiment displayed a shift towards optimism, as the recent drop in prices tempted investors to participate in battered down shares.  The ASPI started the session on a bullish note and reached an intraday high of 11,562 in the first few trading hours. However, the index experienced sideways movements and reached a 2-week high to close the day at 11,531 gaining 118 points. SAMP, COMB, CINS, DFCC and JKH emerged as the top positive contributors to the index. Revitalised interest in Food, Beverage and Tobacco sector stocks like MELS, LMF and CTC was also observed. 

The Food, Beverage and Tobacco sector dominated turnover by 30%, followed by the Banking and Capital Goods sectors, jointly contributing to 33% of overall turnover. 

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp, Access Engineering, Ceylon Tobacco Company. Mixed interest was observed in Hatton National Bank, Lanka Milk Foods and Hayleys Fabric whilst retail interest was noted in Browns Investments, LOLC Finance and Waskaduwa Beach Resort.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Melstacorp and Lanka Milk Foods) whilst the sector index gained 0.51%. The share price of Melstacorp increased by 90 cents to Rs. 81.10. The share price of Lanka Milk Foods moved up by Rs. 1.30 to Rs. 27.50.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank) whilst the sector index increased by 1.58%. The share price of Hatton National Bank gained Rs. 2 to Rs. 182.

Hayleys Fabric and Access Engineering were also included amongst the top turnover contributors. The share price of Hayleys Fabric recorded a gain of 60 cents to Rs. 49.60. The share price of Access Engineering closed flat at Rs. 22.