CSE remains positive on improved investor sentiments

The Colombo stock market remained on the up in tandem with improved investor sentiments though foreigners continued to be net sellers.

The ASPI rose by 35 points or 0.7% and the S&P SL20 by 27 points or 1.26%. Turnover was Rs. 932 million, up from Rs. 568 million on Thursday. However for the week the ASPI was down 4.12 points (or 0.08%) and the S&P SL20 Index increased by 13.31 points (or 0.62%), according to Acuity Stockbrokers. 

First Capital said investor confidence revived with the decrease in new COVID-19 cases, aiding the market to sustain the positive sentiment for the second consecutive session. 

“During the day, ASPI was uplifted predominantly due to the price advances in John Keells Holdings and Ceylon Tobacco. Index experienced a continuous uptrend within the first hour of trading due to the buying interest in the Banking counters. Later recorded a stagnant movement while reaching its intraday high of 4,993 during mid-day before closing at 4,989 gaining 35 points failing to break the short-term psychological level of 5,000,” First Capital said. 

It added that the banking counters dominated the turnover contributing 61% including the parcel trades made in Sampath Bank, Commercial Bank and HNB. 

Market recorded high foreign participation nearly after two weeks dominated by the selling side resulting in a net outflow.

NDB Securities said indices closed in green as a result of price gains in counters such as John Keells Holdings, Ceylon Tobacco Company and Hatton National Bank.

High net worth and institutional investor participation was noted in Sampath Bank and Commercial Bank. Mixed interest was observed in Hatton National Bank, People’s Leasing & Finance and John Keells Holdings whilst retail interest was noted in LOLC Holdings, Tokyo Cement Company and Access Engineering. 

Furthermore, foreigners remained active closing as net sellers mainly due to foreign selling in Commercial Bank. Total foreign sales accounted for 48.8% of the turnover.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank, Sampath Bank and Hatton National Bank) whilst the sector index gained 1.10%. The share price of Commercial Bank closed flat at Rs. 74.00 whilst foreign holdings decreased by 1,508,399 shares. The share price of Sampath Bank gained Rs. 1.50 (1.25%) to close at Rs. 121.50 while the share price of Hatton National Bank moved up by Rs. 3.20 (3.00%) to close at Rs. 110.00.

Diversified Financials sector was the second highest contributor to the market turnover (due to People’s Leasing & Finance) whilst the sector index increased by 0.30%. The share price of People’s Leasing & Finance closed flat at Rs. 11.50.

John Keells Holdings was also included amongst the top turnover contributors. The share price of John Keells Holdings appreciated by Rs. 1.50 (1.36%) to close at Rs. 111.40.