Positive start for November at CSE though trading volume sinks to 4-month low

The Colombo stock market began November on a positive note with both indices managing a gain though investor activity levels remained lacklustre.

The active S&P SL20 was up 0.7% and the benchmark ASPI was almost flat with just 3.69 points gain. Turnover was Rs. 1.2 billion involving a mere 33 million shares, lowest in fourth months.

The positive start for November was due to an improvement in sentiment and comes after October suffered a loss ending three months of gains.

Asia Securities said following two sessions of losses, the indices managed to close in positive territory on Tuesday  with the ASPI edging up 4 points (+0.04%) at 8,606 and the S&P SL 20 index gaining 20 points (+0.8%) at 2,611. EXPO (+11.1%) ended as the biggest index mover, contributing 30 points to the ASPI. On the flipside, LIOC (-4.6%), JKH (-1.1%), MELS (-2.2%), CICN (-5.1%), and RHL (-7.8%) weighed negatively on the indices.

Turnover was led by EXPO (Rs. 490 million), LIOC (Rs. 236 million), and JKH (Rs. 56 million) while the trading volume totalled 33 million shares. The breadth of the market remained negative with 82 price gainers and 97 decliners.

Asia also said foreigners recorded a net inflow of Rs. 60.3 million while their participation declined to 3% of turnover (previous day 4.3%). Net foreign buying topped in SPEN at Rs. 22 million and selling topped in EXPO at Rs. 4.3 million.

First Capital said the bourse closed flat amidst improvement in investor sentiment on the back of deflated CCPI and possible rate revisions which is expected during the first half of next year. Index moved with a sharp volatility during yesterday’s  session while investor interest predominantly revitalised on EXPO following rumours on a possible resumption of share buy-backs by the parent company SG Holdings which is assumed to take place in the coming weeks.

Subsequently, the market marginally recovered previous losses and closed the day at 8,606, gaining 4 points.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings and Hayleys. Mixed interest was observed in Expolanka Holdings, Lanka IOC and Melstacorp whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting and LOLC Finance.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 11.12%. The share price of Expolanka Holdings increased by Rs. 16.75 (11.15%) to close at Rs. 167.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index decreased by 4.08%. The share price of Lanka IOC lost Rs. 8.50 (4.63%) to close at Rs. 175.25.

John Keells Holdings, Melstacorp and Browns Investments were also included amongst the top turnover contributors. The share price of John Keells Holdings moved down by Rs. 1.50 (1.13%) to close at Rs. 131. The share price of Melstacorp recorded a loss of Rs. 1 (2.17%) to close at Rs. 45.00. The share price of Browns Investments closed flat at Rs. 6.