Stock market struggles its way to close marginally up

Saturday, 17 February 2024 00:22 - - {{hitsCtrl.values.hits}}

The Colombo stock market struggled its way to close marginally up this week amidst relatively low turnover.

The indices continued their positive performance, securing a weekly gain for the third straight week. The ASPI gained 18.8 points (0.2%) and the S&P SL20 gained 21.9 points (0.7%) during the week. In contrast last week the ASPI gained by 1.31% and the S&P SL20 by 2.85%.

Daily turnover for the week averaged Rs. 862 million as against Rs. 3.74 billion on account of an internal transfer of 4.5% stake by Fairfax.

On Friday, the ASPI briefly surpassed the 10,600 mark. UAL saw a pick-up in buying interest as the stock ended with a sharp 4.7% gain while SCAP (+3.3%), PLR (+5.9%), and BIL (+2.4%) supported the ASPI’ upward movement during the session. The index reversed course in mid-day trading due to price losses in LMF (-1.3%), CALT (-1.8%), MELS (-1.0%), and ACL (-1.1%). However, a late-hour recovery pushed the index to close in green for the day. Overall, 69 stocks ended in green while 86 settled with losses.

Turnover was Rs. 1.3 billion boosted by a block trade in NDB (Rs. 626 million).

Asia also said foreigners recorded a net outflow of Rs. 134.3 million. Net foreign buying topped in DIAL at Rs. 29.3 million and selling topped in EXPO at Rs. 79.1 million.

First Capital said the bourse closed in the green for the 2nd consecutive session. ASPI was on the path to end on a loss towards the last few hours of the session, but saw a resurgence towards the latter part of the day ending at an 18 point gain to 10,586. The biggest positive contributors of the day were LOLC, NDB and EXPO whilst the largest negative contributors were SPEN, MELS and CFIN. The market saw an increased retail participation with investors showing a heightened interest on several counters; notably, EXPO and UAL. Large portion of turnover was contributed by large off-board transactions on NDB amounting to 9.8 million shares at a share price of Rs. 64.

NDB Securities said crossings were witnessed in National Development Bank and John Keells Holdings, accounting for 47.4% of the turnover. Mixed interest was observed in Expolanka Holdings, Union Assurance and Hatton National Bank whilst retail interest was noted in Browns Investments, Dialog Axiata and Softlogic Capital.

The Banking sector was the top contributor to the market turnover (due to National Development Bank and Hatton National Bank) whilst the sector index gained 0.33%. The share price of National Development Bank increased by Rs. 1.10 to Rs. 65.10. The share price of Hatton National Bank appreciated by 75 cents to Rs. 163.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 0.44%. The share price of John Keells Holdings recorded a gain of one rupee to Rs. 189.

Expolanka Holdings and Union Assurance were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 1.75 to Rs. 134.75. The share price of Union Assurance moved up by Rs. 2 to Rs. 45.

Separately, Commercial Development Company, Pan Asia Banking Corporation, and Dialog Axiata announced their dividends of Rs. 4.25 cents and Rs. 1.34 per share respectively.