Late rally helps CSE close week on the up

The Colombo stock market closed the week on the up thanks to a late rally in tandem with positive investor sentiment.

The ASPI gained 90.87 points (0.98%) and the S&P SL20 gained 34.79 points (1.32%). The gain was lesser in comparison to sharp rises of 4.88% and 5.78% respectively in the previous week.

Daily turnover averaged Rs. 1,252 million, down from Rs. 2,039 million last week.

Asia Securities said indices on Friday marked the third consecutive session of upward momentum. Increased retail buying was observed in SCAP (+9.9%), AAIC (+9.9%) while construction sector stocks saw improved activity driven by the steady decrease in interest rates. Key stocks ACL (+3.1%), RCL (+1.4%), PARQ (+1.2%), TILE (+3.1%), TKYOX (+5.6%), TKYON (+1.5%), and ALUM (+2.2%) ended with sizeable gains during the session. HNBN recorded 2 crossings with a total value of Rs. 68.5 million driven by HNI activity. On the other hand, front-liners JKH (+1.4%), HAYL (+1.9%), HNBX (+3.6%), SAMP (+1.3%), CCS (+2.1%), and NTBN (+1.0%) closed in green. Nevertheless, CALT (-2.6%), MELS (-1.3%), LOFC (-1.8%), FCT (-2.6%), BIL (-1.8%), and LOLC (-1.4%) settled with losses.

The breadth of the market was positive with 88 price gainers and 81 decliners.

Foreigners recorded a net inflow of Rs. 19.6 million. Net foreign buying topped in JKH at Rs. 10.3 million and selling topped in MELS.N at Rs. 4.7 million.

First Capital said investor participation slightly emerged, subsequent to the premium cuts in the bond yields as DDO draws closer.

Following the clarification on the DDO, where the Government assured no haircut on domestic debt, buying interest elevated on the overall Banking sector. Despite a volatile trading session, the market managed to extend the positive momentum for the third consecutive day and closed for the day at 9,339 as retail investor participation reactivated on Insurance sector (mainly Softlogic group) and Mid-cap shares.

Amidst the slight recovery in the retail participation, turnover was largely dominated by the Capital Goods sector (20%) and Banking sector (11%). Meanwhile, High net worth investors continued to take positions in the market through offboard transactions mainly HNB (500,000 shares at Rs. 137 each), JKH (200,000 shares at Rs. 145.0) and LIOC (200,000 shares at Rs. 127 each) which contributed 11% to the overall turnover.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, John Keells Holdings, and Vidullanka non-voting. Mixed interest was observed in Lanka IOC, Hayleys and ACL Cables whilst retail interest was noted in Softlogic Capital, Co-operative Insurance Company and LOLC Finance.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index gained 1.10%. The share price of John Keells Holdings gained Rs. 2 to Rs. 145.25. The share price of Hayleys appreciated by Rs. 1.40 to Rs. 75.50.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank) whilst the sector index increased by 0.76%. The share price of Hatton National Bank moved up by Rs. 1.50 to Rs. 137.

Softlogic Capital and Lanka IOC were also included among the top turnover contributors. The share price of Softlogic Capital increased by 90 cents to Rs. 10. The share price of Lanka IOC recorded a loss of 25 cents to Rs. 126.75.