Positive start as CSE returns to pre-COVID trading hours

The Colombo stock market succeeded to close on a positive note yesterday as the CSE returned to pre-COVID trading hours.

The active S&P SL20 gained by 1.6% or 42 points thanks to Expolanka Holdings and the benchmark ASPI by 66 points or 0.7%. Turnover was Rs. 1.3 billion (as opposed to Rs. 812 million on Thursday) involving 75 million shares.

Number of trades was 16,305 yesterday as the CSE expanded trading hours till 2.30 p.m. as in the case of pre-COVID in comparison to 1.30 p.m. as of last week. On Thursday the number of trades was 13,304 when shortened trading hours were operative. Last week saw 33,120 trades down from 65,234 in the previous week.

Asia Securities said the indices commenced the week on a positive note mainly due to price gains in EXPO (+11.1%), VONE (+5.6%), RCL (+1.7%), LWL (+1.6%), GLAS (+2.1%), and HAYL (+1.2%).

Sectorally, plantation stocks TPL (+25.0%), KVAL (+11.2%), WATA (+3.3%), AGAL (+1.9%), and NAMU (+1.3%) saw a pick-up in buying interest during the session.

EXPO (+29 points) contributed the most to the ASPI, followed by VONE (+22 points). Overall, 97 stocks closed in green while 81 settled with losses.

Turnover was led by EXPO (Rs. 352 million), RCL (Rs. 150 million), and LWL (Rs. 75 million). Notably, off-board transactions contributed 22% to turnover driven by crossings in RCL (Rs. 120 million), LWL (Rs. 50 million), CCSN (Rs. 40 million), HAYLN (Rs. 36 million) and LGILN (Rs. 33 million).

Asia said foreigners recorded a net inflow of Rs. 46.3 million. Net foreign buying topped in CCS.N at Rs. 40 million and selling topped in LFIN at Rs. 2.5 million.

First Capital said the ASPI continued to remain bullish and closed the day on a positive note, gaining 66 points with renewed retail participation on EXPO which led the top contributors to the ASPI. Moreover, investors actively traded on TPL which recorded a capital gain of 25% during the session after the company announced a dividend of Rs. 17.35 per share.

Although the index displayed volatility in the beginning, the market continued to upsurge afterwards and traded positively to close the day at 9,323 gaining 66 points. As the market trading hours extended to the standard hours from 9.30 a.m. to 2.30 p.m., the overall market turnover hit a one week high and activities witnessed a slight improvement compared to the previous week.

NDB Securities said high net worth and institutional investor participation was noted in Royal Ceramics, Lanka Walltiles and Ceylon Cold Stores. Mixed interest was observed in Expolanka Holdings, John Keells Holdings and Talawakelle Tea Estates whilst retail interest was noted in Marawila Resorts (rights), SMB Leasing nonvoting and Browns Investments.

The Capital Goods sector was the top contributor to the market turnover (due to Royal Ceramics, Lanka Walltiles, John Keells Holdings and Hayleys) whilst the sector index edged up by 0.11%. The share price of Royal Ceramics gained 50 cents to Rs. 29.40. The share price of Lanka Walltiles moved up by 80 cents to Rs. 50.10.

The share price of John Keells Holdings recorded a loss of 75 cents to Rs. 138. The share price of Hayleys appreciated by 90 cents to Rs. 73.30.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index increased by 11.10%. The share price of Expolanka Holdings increased by Rs. 16.25 (11.11%) to Rs. 162.50.