Investor sentiment mixed at CSE amidst high Rs. 5 b turnover

The Colombo stock market saw mixed investor sentiment though turnover rose to a new recent high with heavy activity.

The active S&P SL20 declined by 2 points and  benchmark ASPI gained by 1.5 points. Turnover crossed the Rs. 5 billion mark after a week involving 172.4 million shares.

Asia Securities said the market witnessed a mixed session with the indices turning range-bound weighed by HAYL (-1.2%), COMBN (-2.7%), CALT (-2.1%), FCT (-2.7%), AGST (-1.7%), SCAP (-2.5%), BIL (-1.5%), LOFC (-1.6%), and DIST (-1.3%). Nevertheless, LIOC (+5.3%), HNBN (+3.6%), HNBX (+3.3%), TKYON (+1.6%), TKYOX (+2.0%), ALUM (+2.0%), GLAS (+3.1%), CCS (+2.3%), and SUN (+1.6%) closed with price gains in an otherwise subdued session.

HNBN (+17 points) came in as the biggest index mover during the session while COMBN (-17 points) ended as the major laggard on the ASPI. Overall, 89 stocks closed in green while 102 settled with losses. 

Turnover was driven by a block trade executed in DPL (Rs. 2.3 billion). Excluding DPL, LIOC (Rs. 410 million ), SUN (Rs. 402 million), and HHL (Rs. 110 million) saw higher investor activity during the session. Crossings accounted for 48.9% of turnover driven by DPLN (Rs. 2.3 billion) DISTN (Rs. 33.8 million) and HNBN (Rs. 32.8 million).

Foreigners recorded a net outflow of Rs. 233 minimum. Net foreign buying topped in SPEN at Rs. 68.5 million  while net foreign selling topped in SUN at Rs. 261.1 million. Frist Capital said the bourse displayed signs of volatility as it closed flat at 10,492 gaining only 2 points.  Moreover, the proposal issued by the Indian Oil Corporation for an oil distribution pipe line connecting Nagapattinam, Trincomalee and Colombo enabled LIOC to observe revitalized interest which backed the index to perform exceptionally well alongside some selective Banking sector shares resulting in the index to remain in the green zone.

Among notable transactions Dankotuwa Porcelain PLC (DPL) recorded an off board transaction of Rs. 2.3 billion which amounted to a total of 81.4 million shares at Rs. 28.3 each, which resulted by a 50.1% stake change. The retail sector continued to witness positive investor interaction mainly on small and mid-cap shares whilst treasury counters experienced profit taking.

NDB Securities said crossings were witnessed in Dankotuwa Porcelain, Hayleys and John Keells Holdings accounting for 48.9% of the turnover. Mixed interest was observed in Lanka IOC, Sunshine Holdings and Hemas Holdings whilst retail interest was noted in Browns Investments, EML Consultants and Softlogic Capital.

The Consumer Durables & Apparel sector was the top contributor to the market turnover (due to Dankotuwa Porcelain) whilst the sector index lost 1.20%. The share price of Dankotuwa Porcelain decreased by 10 cents to Rs. 27.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Sunshine Holdings) whilst the sector index decreased by 0.22%. The share price of Sunshine Holdings moved up by 80 cents to Rs. 50.80.

Lanka IOC, Hemas Holdings and Sampath Bank were also included amongst the top turnover contributors. The share price of Lanka IOC gained Rs. 7 to Rs. 140. The share price of Hemas Holdings closed flat at Rs. 74. The share price of Sampath Bank closed flat at Rs. 64.30.