Late yet strong recovery brings relief to investors at CSE

A late yet strong recovery lifted the spirits of investors at the Colombo stock market yesterday, though it closed negatively ending a five-day winning streak.

The All Share Price Index declined by 14 points or 0.19% and the S&PSL was down two points. Turnover was Rs. 2.3 billion with 143.6 million shares traded. 

First Capital said the bourse slipped back to negative territory disrupting the five-day winning streak. Index rose during the initial minutes of trading and thereafter witnessed a bumpy downtrend hitting an intraday low of 7,309. 

“Later, market recovered displaying an upward momentum over the final hour of trading while closing at 7,341,” First Capital added.

It said turnover remained above Rs. 2 billion mark for three consecutive days dominated by the Materials, and Food, Beverage and Tobacco sector, with a joint contribution of 49%. 

Asia Securities said the indices witnessed a gradual decline initially as investors realised gains from previous sessions. However, the indices rebounded sharply with the ASPI gaining 51 points in the last hour of trading and ended the session with marginal losses. 

Turnover was recorded at healthy levels driven by activity in BIL which accounted for 19% of market activity. 

Materials, Food, Beverage and Tobacco, Capital Goods and Transportation sectors led activity, collectively accounting for 85.1% of turnover. 

Foreigners recorded a net outflow of Rs. 63.9 million while their participation remained flat at 2.5% of turnover (previous day 22.7%). Estimated net foreign buying topped in Hemas at Rs. 6.2 million and net foreign selling topped in Haycarb at Rs. 24 million. 

NDB Securities said the ASPI closed in red as a result of price losses in counters such as Haycarb, Ceylon Tobacco Company and Browns Investments.

It said high net worth and institutional investor participation was noted in Expolanka Holdings and Union Bank. Mixed interest was observed in Royal Ceramics, Haycarb and Browns Investments whilst retail interest was noted in Vidullanka, Chrissworld and Vidullanka rights. 

Materials sector was the top contributor to the market turnover (due to Haycarb and Dipped Products), whilst the sector index lost 1.67%. The share price of Haycarb lost Rs. 6.65 (6.29%) closing at Rs. 99.10, whilst foreign holdings decreased by 242,603 shares. The share price of Dipped Products declined by Rs. 0.90 (1.58%) to close at Rs. 56.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments), whilst the sector index decreased by 0.39%. The share price of Browns Investments decreased by Rs. 0.10 (1.47%) to close at Rs. 6.70.

Royal Ceramics and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Royal Ceramics moved up by Rs. 0.20 (0.52%) to close at Rs. 38.30. The share price of Expolanka Holdings recorded a loss of Rs. 0.20 (0.43%) to close at Rs. 46.80.

Separately, Access Engineering announced an interim dividend of Rs. 0.50 per share, while Haycarb announced a final dividend of Rs. 0.50 per share.