Stock market begins April positively

The Colombo stock market yesterday began the holidays-filled April on a positive note, lifting the morale of investors who have been concerned by back-to-back losses during the past two months.

The benchmark ASPI gained by over 119 points or 0.76% and the active S&P SL20 by 0.6%. During February and March, the ASPI had lost 4% each.

Turnover yesterday was Rs. 1.9 billion involving 63 million shares.

First Capital said the first trading session for April commenced on a negative note for a short while, with the ASPI dropping as the market opened. This trend soon reversed as it began picking up and building on positive momentum throughout the rest of the day.

The initial drop in the index was largely fuelled by the banking sector as most banks’ XD date being yesterday led to added selling pressure among certain investors.

Retail investors demonstrated increased participation while HNW investors had a quiet trading session with only one crossing present. There was mixed sentiment towards banking counters while positive sentiment was noted towards blue-chip stocks. 

MELS, HAYL, HNB, NDB and LOLC emerged as the top positive contributors to the index, while SAMP, COMB, CINS, CARS and ASPH were the top negative contributors.

The Banking sector was the most significant contributor to the overall turnover with a 29% share, followed by the Capital Goods sector at 23% and the Diversified Financials Sector at 12%. Foreign investors were net sellers, with a net outflow of Rs. 75.4 million.

NDB Securities said high net worth and institutional investor participation was noted in Commercial Bank, Sampath Bank and Hayleys. Mixed interest was observed in Sunshine Holdings, Access Engineering and Janashakthi Insurance Company whilst retail interest was noted in Hela Apparel Holdings, Browns Investments and Lankem Development rights.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank and Sampath Bank) whilst the sector index lost 0.92%. The share price of Commercial Bank decreased by Rs. 3.75 to Rs. 143.75. The share price of Sampath Bank lost Rs. 7 to Rs. 115.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys and John Keells Holdings) whilst the sector index increased by 1.58%. The share price of Hayleys moved up by Rs. 6.50 to Rs. 143.50. The share price of John Keells Holdings appreciated by 10 cents to Rs. 20.30.

Commercial Credit and Finance was also included amongst the top turnover contributors with its share price gaining Rs. 3.50 to Rs. 59.90.