Short-term investors book profit at CSE amidst low turnover

The Colombo stock market yesterday couldn’t sustain the convincing positivism achieved on Monday as investors resorted to profit taking causing the indices to close on a mixed note.

The active S&P SL20 gained by 11 points or 0.4% whilst the benchmark ASPO shed 12 points or 0.1%. On Monday the indices gained by over 1%.

Turnover yesterday was Rs. 667.8 million involving 28 million shares. 

Asia Securities said S&P SL20 was supported by price gains in AAIC (+1.3%), COMBN (+1.4%), EXPO (+1.8%), and SAMP (+1.4%).

Turnover was led by EXPO (Rs. 120 million), SAMP (Rs. 72 million), and NDB (Rs. 59 million). The 10-day moving average of market turnover has fallen to Rs. 779 million, significantly lower than the yearly average of Rs. 1,639 million, indicating a notable slowdown in retail and HNI activity which could be attributed to concerns surrounding domestic debt restructuring as investors remain watchful of earnings.

The ASPI initially touched a high of 8,968 (+41 points) before dropping to 8,889 (-38 points) in mid-day trading. Nevertheless, the index saw a late recovery to close out the session at 8,915 (-12 points). Overall, 76 stocks ended with price gains while 86 settled with losses.

Foreigners recorded a net inflow of Rs. 29.6 million. Net foreign buying topped in MELS.N at Rs. 22.7 million and selling topped in SAMP.N at Rs. 5.2 million.

First Capital said after consecutive gains in the last three sessions, the bourse witnessed slight profit booking in selected counters while weak retail participation further dimmed market sentiment. ASPI moved with sizable volatility during the day and by mid-session profit taking was observed mainly in the Capital Goods sector and Materials sector.

It said activities took a positive turn in the banking sector following the press release from the banks providing clarity on DDR. Accordingly, SAMP and COMB were among the top positive contributors to the ASPI. However, amidst poor retail participation index reversed to red and closed at 8,915 losing 12 points. However, during the day investor interest was enticed on BIL following the Finlay deal.

NDB Securities said high net worth and institutional investor participation was noted in Expolanka Holdings and Sampath Bank. Mixed interest was observed in Hatton National Bank and National Development Bank whilst retail interest was noted in Browns Investments, Tokyo Cement Company and Aitken Spence Hotel Holdings.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank, National Development Bank and Hatton National Bank) whilst the sector index gained 0.36%. The share price of Sampath Bank gained 70 cents to Rs. 51.40. The share price of National Development Bank moved up by 10 cents to Rs. 43.20. The share price of Hatton National Bank recorded a loss of Rs. 2.75 to Rs. 115.

The Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index increased by 1.76%. The share price of Expolanka Holdings increased by Rs. 2.75 to Rs. 158.75.

Melstacorp was also included amongst the top turnover contributors. The share price of Melstacorp declined by 30 cents to Rs. 54.