Mixed day but CSE ends August with welcome gains in indices

Tuesday, 1 September 2020 00:39 - - {{hitsCtrl.values.hits}}

The Colombo stock market had a mixed day yesterday but ended August with welcome gains by both indices as investors turned optimistic following the election of a strong Government earlier on.

According to NDB Securities in August the All Share Price Index (ASPI) gained by 4% and the more active S&P SL 20 Index by 8.26%. Average daily turnover was Rs. 1.8 billion with value topping the Rs. 1 billion mark for 15 consecutive days.

Acuity Stockbrokers said the Bourse ended on a mixed note Monday as the ASPI increased by 0.16% or 8.46 points to close at 5,329.33 points, while the S&P SL20 Index decreased by 0.03% or 0.63 points to close at 2,359.75.

Turnover increased by 31.3% relative to last Friday to Rs. 1.37 billion while the turnover of DFCC accounted for 31.4% of the day’s total.

Foreign investors meanwhile, recorded a net outflow of Rs. 0.45 billion over the day compared to a net outflow of Rs. 0.35 billion on Friday.

First Capital said buying re-emerged after the cooling off effect last week giving the month a green finish after four consecutive days of downfall.

“Index recorded a slow uptrend since the beginning of the session due to the buying interest in selective Capital Goods and Materials counters and closed at 5,329 with an advance of 8 points,” First Capital added.

It said Banking and Capital Goods counters dominated the turnover for the month jointly contributing over 40% consecutively. Foreign investors continued to be on a cautious attitude while completing a month of dominant participation in the selling-side.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as John Keells Holdings, Cargills and Vallibel One.

High net worth and institutional investor participation was noted in DFCC Bank, Hatton National Bank and John Keells Holdings. Mixed interest was observed in Royal Ceramics, Browns Investments and Commercial Bank whilst retail interest was noted in Access Engineering, Central Industries and ACL Cables. Furthermore, foreigners remained active closing as net sellers mainly due to foreign selling in DFCC Bank. Total foreign sales accounted for 43.0% of the turnover.

The Banking sector was the top contributor to the market turnover (due to DFCC Bank and Commercial Bank) whilst the sector index lost 0.14%. The share price of DFCC Bank increased by Rs. 0.90 (1.33%) closing at Rs. 68.60 whilst foreign holdings decreased by 5,378,497 shares. Furthermore, the share price of Commercial Bank declined by Rs. 0.60 (0.74%) to close at Rs. 80.90.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Royal Ceramics) whilst the sector index increased by 1.26%. The share price of John Keells Holdings gained Rs. 1.60 (1.19%) to close at Rs. 135.60 while the share price of Royal Ceramics moved up by Rs. 4.00 (5.13%) to close at Rs. 81.90.

Browns Investments was also included amongst the top turnover contributors. The share price of Browns Investments recorded a loss of Rs. 0.10 (4.17%) to close at Rs. 2.30.

Lanka Milk Foods announced their first and final dividend of Rs. 2.50 per share while Abans Electricals announced their final dividend of Rs. 1.50 per share.