Stock market ends week with mixed sentiments

The Colombo stock market nearly struggled its way to close marginally on the up this week with mixed investor sentiment keeping turnover lower.

The All Share Price Index yesterday closed up 10 points or 0.08% and S&PSL20 finished almost flat. During the week, the ASPI and the S&P SL20 gained 0.25% and 1.10%, respectively.

Turnover yesterday was Rs. 5 billion whilst the daily average for the week was Rs. 6.18 billion. Analysts said the market was uneasy in recent days threatening the bullish momentum notwithstanding crises.  

Asia Securities said the ASPI edged higher on Friday supported by a late-hour recovery in prices of selected heavyweight stocks. However, activity during the session was moderate with turnover reaching a near one-month low as investors resorted to a cautious approach ahead of the earnings season.

It said after remaining subdued for the last few sessions, a pickup in retail and HNI buying was seen in EXPO during the closing hours prompting the stock to close with a decent gain of 1.3%. On the other hand, JAT holdings declined sharply lower as investors booked quick profits at elevated levels.

“Following a gap-up opening of 63 points, the ASPI slipped into negative territory weighed by price declines in LOLC, SLTL, NIFL and JKH. After hovering in the low range of 13,350 in mid-afternoon trade, the index regained around 87 points and reversed all of its intra-day losses to end the session positive. Overall, 100 stocks recorded price gains while 123 closed lower,” Asia added.

It said foreigners recorded a net outflow of Rs. 46.4 million while their participation declined to 1.9% of turnover (previous day 2.2%). Net foreign buying topped in CFLB at Rs. 33.2 million and selling topped in VFIN at Rs. 34 million.

First Capital said the bourse managed to wrap up the week, stepping into the green region after ending a choppy trading session.

“The ASPI initiated the day with a high beat but couldn’t hold on to the position as the uncertainty began to dominate the market, tumbling down the index during the first half of trading while displaying a significant level of volatility. However, the index managed to revert to an upward momentum in the final hour of trading as bargain hunters came to light pushing the prices higher,” First Capital added.

It said the Capital Goods sector dominated the turnover followed by Transportation and Food, Beverage and Tobacco sectors for a joint contribution of 55%.

NDB Securities said the ASPI edged up as a result of price gains in counters such as Expolanka Holdings, Asiri Hospital Holdings and Carson Cumberbatch.

It said high net worth and institutional investor participation was noted in Expolanka Holdings, John Keells Holdings and LOLC Holdings. Mixed interest was observed in ACL Cables, Softlogic Finance and Ex- Pack Corrugated Cartons, whilst retail interest was noted in Browns Investments, Softlogic Capital and SMB Leasing nonvoting.

The Capital Goods sector was the top contributor to the market turnover (due to ACL Cables and John Keells Holdings), whilst the sector index edged down by 0.05%. The share price of ACL Cables moved up by Rs. 2 (1.69%) to close at Rs. 120. The share price of John Keells Holdings declined by one rupee (0.62%) to close at Rs. 161. Transportation sector was the second-highest contributor to the market turnover (due to Expolanka Holdings), whilst the sector index increased by 1.34%. The share price of Expolanka Holdings increased by Rs. 5 (1.30%) to close at Rs. 391. Browns Investments and Lanka Orix Finance were also included amongst the top turnover contributors. The share price of Browns Investments closed flat at Rs. 16.80. The share price of Lanka Orix Finance recorded a loss of 20 cents (0.70%) to close at Rs. 28.40.