Upbeat investor sentiment at CSE boosts indices, turnover

The Colombo stock market yesterday began a new week from it ended on Friday – upbeat investor sentiment bolstering turnover and the indices.

The active S&P SL 20 gained by 1.4% and the benchmark ASPI by 0.9%. On Friday, the ASPI crossed the 12,200 levels with a gain of 125 points.

Last week the ASPI gained by 3.8% and the active S&P SL20 by 5.4% in contrast to the losses of 2.3% by ASPI and the 3.45% by S&P in the previous week.

Turnover was Rs. 414 billion involving 166.7 million shares. Turnover was led by Ceylon Cold Stores (Rs. 338 million), JKH (Rs. 232 million), Sampath Bank (Rs. 219 million), Commercial Bank (Rs. 202 million) and Royal Ceramics (Rs. 201 million). It was the second consecutive day of over Rs. 4 billion turnover at CSE.

Asia Securities said the market continued its strong momentum on Monday mainly led by the banking sector coupled with broad-based investor activity. The indices surged to a two-year high with the ASPI crossing the 12,300 level to close at 12,310 (+109 points).

SAMP (+2.6%), COMBN (+1.5%), HNBN (+2.4%), and NDB (+1.3%) led the upward movement in banks. CCS (+7.8%) saw significant interest during the session with the stock topping the turnover list (Rs. 338 million). Furthermore, HAYL (+8.0%), ALUM (+6.7%), SUN (+2.3%), CFVF (+6.5%), and LFIN (+3.1%) boosted the indices during the session.

HAYL (+18 points), SAMP (+15 points), and HNBN (+15 points) came in as the major drivers of the ASPI. The breadth of the market was positive with 132 price gainers and 80 decliners.

Foreigners recorded a net outflow of Rs. 148 million. Net foreign buying topped in COMB.N at Rs. 133.8 million and selling topped in CCS.N at Rs. 194.9 million.

First Capital said the Bourse commenced the week on a bullish note, extending its winning streak for the 5th consecutive day driven by growing confidence among retail investors.

Consequently, the index closed at 12,310 by gaining 110 points with the positive contribution from the conglomerates such as HAYL, MELS coupled with the banking sector counters, SAMP, HNB and COMB. Significantly, propelled by multiple crossings, turnover surged marking a remarkable 62.2% increase over the month’s daily average. The Capital Goods sector contributed 29% to the turnover, while the combined contribution of the Banks and Food, Beverage, and Tobacco sectors amounted to 36%.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Commercial Bank and Ceylon Cold Stores. Mixed interest was observed in Sampath Bank, Royal Ceramics and Hayleys whilst retail interest was noted in Browns Investments, Marawila Resorts and Beruwala Resorts.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Royal Ceramics) whilst the sector index gained 0.87%. The share price of John Keells Holdings gained 25 cents to Rs. 208.50. The share price of Royal Ceramics appreciated by 30 cents to Rs. 33.30.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Ceylon Cold Stores) whilst the sector index increased by 0.83%. The share price of Ceylon Cold Stores increased by Rs. 4.50 to Rs. 62.50.

Sampath Bank and Commercial Bank were also included amongst the top turnover contributors. The share price of Sampath Bank moved up by Rs. 2.10 to Rs. 82.10. The share price of Commercial Bank recorded a gain of Rs. 1.75 to Rs. 116.25.