Stock market struggles to remain positive

The Colombo stock market yesterday had to struggle to close its benchmark index marginally up despite satisfactory turnover.

The All Share Price Index gained by 7.5 points, or 0.06%, whilst the S&PSL20 declined by just 1 point or 0.03%. Turnover was Rs. 5.8 billion involving 809.4 million shares.

Asia Securities said that following two sessions of losses, the ASPI edged higher supported by price gains in heavyweights HAYL, CTC and VONE while the more liquid S&P SL20 index remained in negative territory due to price declines recorded in EXPO, LOLC and LOFC. Sector-wise, plantation stocks witnessed more traction during the session and ended sharply higher while Food, Beverage & Tobacco, Diversified Financials, Capital Goods and Banks sectors led activity, collectively accounting for 72.7% of turnover. Activity continued strong while the breadth of the market turned positive with 124 gainers and 91 decliners.

First Capital said the bourse was engrossed with mixed sentiment despite a short-lived initial spike managing a marginal gain after a continuous drop since the beginning of the week. The index started on a positive note gaining 108 points while hitting an intraday high of 12,016 but most of the gains were wiped out within the first 15 minutes of the session. Eventually, the market displayed significant volatility towards the end of the trading but managed to reverse the negativity and closed the day at 11,915, gaining seven points. Turnover was driven by active retail participation led by a joint contribution of 51% from Food, Beverage & Tobacco sector and Diversified Financials sector. Foreign investors remained net sellers while recording low participation.

NDB Securities said the ASPI edged up as a result of price gains in counters such as Hayleys, Ceylon Tobacco Company and SMB Leasing.

It said high net worth and institutional investor participation was noted in Melstacorp, Commercial Bank and Sinhaputhra Finance. Mixed interest was observed in Expolanka Holdings, hSenid Business Solutions and Browns Investments, whilst retail interest was noted in SMB Leasing voting and non-voting and Industrial Asphalts.

The Food, Beverage & Tobacco sector was the top contributor to the market turnover whilst the sector index gained 0.60%. The share price of Melstacorp gained 30 cents (0.53%) to close at Rs. 56.50. The Diversified Financials sector was the second highest contributor to the market turnover whilst the sector index decreased by 0.70%. The share price of SMB Leasing moved up by 30 cents (15%) to close at Rs. 2.30. The share price of SMB Leasing non-voting recorded a gain of 20 cents (40%) to close at 70 cents. Commercial Bank and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Commercial Bank increased by 10 cents (0.13%) to close at Rs. 78.70. The share price of Expolanka Holdings edged down 25 cents (0.07%) to close at Rs. 373.

Separately Kelani Valley Plantations, Haycarb and Singer Sri Lanka announced their interim dividends of 25 cents, 75 cents and 35 cents per share respectively.