CSE opens fresh week positive; ASPI crosses psychological 5,000-point mark

The Colombo stock market began a fresh week with bullish sentiments with both indices up and turnover returning to Rs. 1 billion level though foreigners remained net sellers.

Acuity Stockbrokers said the bourse ended on a positive note as the ASPI increased by 1.01% or 50.35 points to close at 5,038.85 points, while the S&P SL20 Index also increased by 1.28% or 27.63 points to close at 2,1281.13.

Turnover increased by 27.6% relative to Friday to Rs. 1.19 billion while the crossings accounted for 19.1% of the day’s total turnover. 

Foreign investors recorded a net outflow of Rs. 0.39 billion over the day compared to a net outflow of Rs. 0.21 billion on Friday.

First Capital said anticipation of a ‘V’ shaped recovery in the exports drove the positive sentiment in the market for the third consecutive session while aiding it to break the short-term psychological level of 5,000. 

“Market experienced an uptrend within the first hour of trading due to the buying interest in JKH and DIAL and reached its intraday high of 5,040, thereafter recorded a stagnant movement and closed at 5,039 gaining 50 points,” First Capital said. 

It noted that turnover reverted back to recording more than Rs. 1 billion on the back of the parcel trades made in People’s Leasing & Finance, Nations Trust Bank and Commercial Bank contributing 19% of the total. 

Market witnessed moderate foreign participation dominated by the selling side resulting in a net outflow, First Capital added.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as John Keells Holdings, Dialog Axiata and Lion Brewery.

High net worth and institutional investor participation was noted in People’s Leasing & Finance, John Keells Holdings and Nations Trust Bank. Mixed interest was observed in Dialog Axiata, Commercial Bank and Hatton National Bank, whilst retail interest was noted in The Colombo Fort Land & Building, Hayleys Fabric and Access Engineering.

Furthermore, foreigners remained active closing as net sellers mainly due to foreign selling in People’s Leasing & Finance. Total foreign sales accounted for 42.7% of the turnover.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank and Nations Trust Bank) whilst the sector index gained 1.13%. The share price of Commercial Bank moved up by Rs. 0.90 (1.22%) to close at Rs. 74.90 while the share price of Nations Trust Bank appreciated by Rs. 1.00 (1.61%) to close at Rs. 63.00.

Diversified Financials sector was the second highest contributor to the market turnover (due to People’s Leasing & Finance) whilst the sector index increased by 0.45%. The share price of People’s Leasing & Finance increased by Rs. 0.30 (2.61%) closing at Rs. 11.80 whilst foreign holdings decreased by 21,030,071 shares.

John Keells Holdings and Dialog Axiata were also included amongst the top turnover contributors. The share price of John Keells Holdings gained Rs 2.10 (1.89%) to close at Rs 113.50. The share price of Dialog Axiata recorded a gain of Rs 0.20 (1.80%) to close at Rs 11.30.