Stock market ends week with mixed sentiments

Colombo stock market ended this week with mixed sentiments as ASPI declining whilst S&P SL was up amidst low turnover as investors remained unenthusiastic about prospects for listed equities.

The benchmark ASPI lost 37.35 points (-0.32%) during the week while the active S&P SL20 gained 9.50 points (+0.28%). Turnover averaged Rs. 2.88 billion declining from Rs.4.4 billion last week.

The negative week was completed with indices closing lower yesterday - ASPI by near 54 points and S&P SL by over 28 points. Turnover was Rs. 3.18 billion million involving 75.9 million shares.

Asia Securities said the market was dragged by SFCL (-20.7%), COMB (-1.9%), JKH (-1.5%), SAMP (-1.2%), and HHL (-2.7%). However, CTC (+5.3%), DFCC (+2.7%), GRAN (+16.8%) and HAYL (+2.0%) scaled price gains during the session.

Overall retail and HNI activity in the market remained subdued. The breadth of the market remained negative, with 91 price gainers and 98 decliners.

Turnover was led by MELS (Rs. 748 million) as the stock saw Rs. 279 million worth of net foreign inflows during the session. Overall foreigners recorded a net inflow of Rs. 74.6 million.

First Capital said market observed a trend of profit-taking, particularly on the banking sector and index-heavy weights, which dragged down the index, to close at 11,596, losing 54 points. 

The bourse closed on a negative note primarily driven by adjustments in prices among banks and index-heavy counters, as a response to recent price hikes.

However, on the positive side, price increases in CTC, GRAIN and TAFL, buoyed by better-than-anticipated results, contributed positively to the index’s performance.

Market turnover was recorded at Rs. 3.2 billion, 9.3% lower than the monthly average turnover of Rs. 3.5 billion, primarily led by the Food, Beverage and Tobacco sector (36%) and the Capital Goods sector (16%).

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp, John Keells Holdings, and CIC Holdings. Mixed interest was observed in Lanka IOC, Teejay Lanka and Hayleys whilst retail interest was noted in Distilleries, People’s Leasing & Finance and SMB Leasing nonvoting. Furthermore, foreigners closed as net buyers.

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Melstacorp) whilst the sector index gained 1.03%. The share price of Melstacorp decreased by Rs. 0.70 (0.81%) to close at Rs. 85.70.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index decreased by 0.90%. The share price of John Keells Holdings lost Rs. 3.00 (1.55%) to close at Rs. 191.00. The share price of Hayleys appreciated by Rs. 1.80 (2.03%) to close at Rs. 90.60.

Lanka IOC and Teejay Lanka were also included amongst the top turnover contributors. The share price of Lanka IOC moved down by Rs. 0.25 (0.21%) to close at Rs. 120.00. The share price of Teejay Lanka recorded a loss of Rs. 0.90 (2.65%) to close at Rs. 33.10.