Stock market manages first weekly gain since mid-March

The Colombo stock market reverted to negative territory yesterday though finishing the week on the up, a positive development since mid-March.

During the week the ASPI and the S&P SL20 gained 1.10% and 1.14% respectively. Last week the ASPI and the S&P SL20 lost 1.7% and 2.3% respectively. The previous weekly gain was achieved in the week ending 17 March.

Average daily turnover this week was Rs. 668.78 million, marginally better than Rs. 616 million last week.

Yesterday the S&P SL20 dipped by 0.6% and the ASPI by 0.25%. Turnover improved to Rs. 786 million involving 94.6 million shares.

Asia Securities said the dip on Friday was mainly due to price losses in EXPO (-1.5%), LIOC (-3.5%), DIAL (-2.8%), CALT (-3.1%), and ACL (-2.3%). On the flipside, HNBN (+1.9%), HAYL (+1.6%), and SCAP (+1.1%) closed in green. The breadth of the market was negative with 71 price gainers and 105 decliners.

Turnover was led by EXPO (Rs. 165 million), LIOC (Rs. 75 million), and HNBN (Rs. 68 million). 

Asia also said a net foreign outflow of Rs. 38 million was recorded due to net selling in HNBN (Rs. 59 million).

Net foreign buying topped in MELS.N at Rs. 13.6 million.

First Capital said the Index remained volatile and recorded thin activities compared to the previous session as it closed at 8,928 losing 22 points. COMB and LIOC witnessed profit taking whilst some revitalised interest was observed on DFCC after it reported a profit of Rs. 2.1 billion, which is a 291.0%YoY increase during 1Q2023.

Among the top contributors to the index, selected banks partly offset the negative sentiment, on the back of CBSL Governor’s comment stating that the country’s public bank deposits and stability of the banking sector will be safeguarded and considered crucial during domestic debt restructuring. Furthermore, among notable gainers, TPL recorded a profit growth of 84.7%YoY to Rs. 1.2 billion during 4QFY23, and HNB significantly contributed through foreign selling and local buying.

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank and Dialog Axiata. Mixed interest was observed in Expolanka Holdings, Lanka IOC and Sampath Bank whilst retail interest was noted in Blue Diamonds Jewellery Worldwide (rights), SMB Leasing and Browns Investments.

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index lost 1.47%. The share price of Expolanka Holdings decreased by Rs. 2.25 to Rs. 150.75.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank and Sampath Bank) whilst the sector index decreased by 0.28%. The share price of Hatton National Bank moved up by Rs. 2.25 to Rs. 118.75. The share price of Sampath Bank closed flat at Rs. 52.30.

Lanka IOC and Dialog Axiata were also included among the top turnover contributors. The share price of Lanka IOC lost Rs. 5.25 to Rs. 144.50. The share price of Dialog Axiata recorded a loss of 30 cents to Rs. 10.50.