Stock market fails to sparkle despite SLIF announcements

The Colombo stock market failed to shine yesterday despite multiple announcements of new policy and initiatives at the Sri Lanka Investment Forum (SLIF) Day 1.

Both indices could manage to gain only by a mere 0.3%, whilst turnover was below average at Rs. 2.1 billion.  

On Friday, the All Share Price Index and the S&P SL20 index gained by 0.7%; whilst for the week, the duo gained by over 3% whilst recording an average daily turnover of Rs. 2.87 billion. 

First Capital said the Bourse opened the week in the green territory retaining its position for the third consecutive day. 

“ASPI started on a positive note following a dip within the first 20 minutes of trading hitting an intraday low of 7,558. Thereafter, the market bounced back during mid-day, followed by a sideways movement, reaching an intraday high of 7,605, before closing at 7,592, gaining 25 points,” First Capital added. 

Asia Securities said the indices continue to witness positive momentum as the ASPI closed the session reaching a seven-week high. 

“The indices closed in green, showcasing the continuing positive momentum while turnover remained at healthy levels,” Asia said. 

It said as index-heavy counters such as DIST, CFIN and JKH witnessed price gains, the indices remained in the green territory for the third consecutive day. 

The Capital Goods, Diversified Financials, Food, Beverage and Tobacco and Materials sectors led activity, collectively accounting for 73.5% of turnover. 

Foreigners recorded a net outflow of Rs. 86.8 million while their participation declined to 3.1% of turnover (previous day 8.1%). Estimated net foreign buying topped in AINS.N at Rs. 3.9 million and net foreign selling topped in COMB.N at Rs. 15.9 million. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Distilleries, Central Finance Company and John Keells Holdings (JKH).

It said high net worth and institutional investor participation was noted in Watawala Plantations. Mixed interest was observed in Dankotuwa Porcelain, ACL Cables and Central Finance Company, whilst retail interest was noted in Browns Investments, Industrial Asphalts and SMB Leasing. Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

The Capital Goods sector was the top contributor to the market turnover (due to Royal Ceramics and Lanka Walltiles), whilst the sector index gained 0.37%. The share price of Royal Ceramics recorded a loss of Rs. 0.10 (0.26%) to close at Rs. 38.60. The share price of Lanka Walltiles declined by Rs. 0.30 (0.45%) to close at Rs. 66.50.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Holdings and Central Finance Company), whilst the sector index increased by 0.49%. The share price of LOLC Holdings edged down by Rs. 0.25 (0.07%) to close at Rs. 382.25. The share price of Central Finance Company moved up by Rs. 12.25 (13.92%) to close at Rs. 100.25.

Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 1 (2.12%) to close at Rs. 48.20.