Trading improves at Colombo stock market

The Colombo stock market managed to produce a better performance on the penultimate trading day of 2022 with improved turnover and the benchmark ASPI closing marginally on the up.

Turnover was Rs. 1.7 billion up from the recent low of Rs. 856 million on Wednesday. Volume of shares traded too was high at 124.5 million shares as against 48 million shares.

The ASPI gained by 0.24% whilst the active S&P SL20 dipped by 0.19%.

Asia Securities said the S&P SL20 index edged down due to price losses in LOLC (-0.4%), LIOC (-3.0%), RICH (-1.6%), and CICX (-1.9%). Nevertheless, Softlogic group stocks AAIC (+15.5%), SCAP (+24.6%), and CRL (+12.8%) recorded double-digit gains during the session.

Turnover was boosted by AAIC (Rs. 383 million), SCAP (Rs. 328 million), and LIOC (Rs. 124 million). CINS (+16 points), CTC (+6 points), and LOFC (+6 points) ended as the major index movers while VONE (-10 points) and LIOC (-7 points) came in as the biggest laggards on the ASPI. Overall, 79 stocks closed in green while 89 ended with losses.

Asia also said foreigners recorded a net outflow of Rs. 102.4 million while their participation increased to 4% of turnover (previous day 1.1%). Net foreign buying topped in BIL at Rs. 10 million while selling topped in JKH at Rs. 99.7 million. Crossings accounted for 10.2% of turnover with one crossing in BFN (Rs. 118.1 million) and 2 crossings in JKH (Rs. 61 million).

First Capital said the broad market witnessed a marginal incline predominantly led by the investor interest in the insurance sector while yields edged down at the primary market bond auction, which further strengthened the positive investor sentiment. Index took a sharp upturn as the market opened with buying interest witnessed on AAIC, CINS and JINS. 

However, amidst sizable volatility during the session, ASPI partially recouped previous day’s losses and closed the day at 8,432 gaining 21 points. Insurance sector solely contributed 46% to overall turnover followed by a 15% contribution from the Diversified Financial sector led by the 6% stake change of BFN through an off-board transaction totalling to 11.8 m shares at Rs. 10.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Ceylinco Insurance, Ceylon Tobacco Company and LOLC Finance.

It said high net worth and institutional investor participation was noted in Orient Finance and John Keells Holdings. Mixed interest was observed in Softlogic Life Insurance, Softlogic Capital and Lanka IOC whilst retail interest was noted in Browns Investments, LOLC Finance and Tess Agro. Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

Insurance sector was the top contributor to the market turnover (due to Softlogic Life Insurance) whilst the sector index gained 5.98%. The share price of Softlogic Life Insurance increased by Rs. 11.80 (15.55%) to close at Rs. 87.70.

Diversified Financials sector was the second highest contributor to the market turnover (due to Softlogic Capital and Orient Finance) whilst the sector index increased by 0.33%. The share price of Softlogic Capital gained Rs. 1.70 (24.64%) to close at Rs. 8.60. The share price of Orient Finance recorded a gain of 20 cents (2.41%) to close at Rs. 8.50. 

Lanka IOC and John Keells Holdings were also included amongst the top turnover contributors. The share price of Lanka IOC moved down by Rs. 6.25 (2.98%) to close at Rs. 203.75. The share price of John Keells Holdings declined by 50 cents to close at Rs. 135.50.