CSE closes on the up before polls day

Wednesday, 5 August 2020 01:20 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday remained positive ahead of the General Election today, though turnover was lower than Friday whilst foreign selling persisted with higher value.

Acuity Stockbrokers said the Bourse ended on a positive note as the ASPI increased by 0.83% or 42.55 points to close at 5,166.81 points, while the S&P SL20 Index also increased by 1.63% or 35.43 points to close at 2,215.08.

Turnover decreased by 14.0% relative to last Friday to amount to Rs. 1.2 billion while the crossings for the day amounted to 18.2% of the day’s total turnover. Foreign investors recorded a net outflow of Rs. 343.6 million over the day compared to a net inflow of Rs. 48.5 million on Friday.

First Capital said optimism in anticipated political stability ahead of election drove the market on the positive sentiment for the second consecutive session. It said turnover for the session was led by the Capital Goods counters with John Keells Holdings and Access Engineering making the primary contribution.

“Index experienced a spike within the first few minutes of trading and thereafter recorded a stagnant sideways movement for the rest of the session and closed at 5,167 gaining 43 points,” First Capital said. Parcel trades made in JKH, Hapugastenna and ACL Cables boosted turnover amounting to 18% of the total.

Market recorded low foreign participation dominated by the selling side resulting in the highest net outflow after two weeks. NDB Securities said the ASPI closed in green as a result of price gains in counters such as John Keells Holdings, Cargills and Commercial Bank.

High net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Access Engineering and LOLC Holdings, whilst retail interest was noted in Browns Investments and Tokyo Cement Company. Furthermore, foreigners closed as net sellers mainly due to foreign selling in John Keells Holdings.

Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings, Access Engineering and ACL Cables), whilst the sector index gained 1.95%. The share price of John Keells Holdings increased by Rs. 2.40 (2.17%) closing at Rs. 113.20 whilst foreign holdings decreased by 1,750,414 shares. The share price of Access Engineering gained Rs. 1.30 (6.63%) to close at Rs. 20.90 while the share price of ACL Cables declined by Rs. 0.10 (0.22%) to close at Rs. 44.90.

The Banking sector was the second highest contributor to the market turnover whilst the sector index increased by 1.35%. LOLC Holdings and Dipped Products were also included amongst the top turnover contributors. The share price of LOLC Holdings moved up by Rs. 2.60 (1.94%) to close at Rs. 136.50 while the share price of Dipped Products recorded a gain of Rs. 2.50 (1.85%) to close at Rs. 137.30.

Furthermore, Dipped Products and Haycarb announced their interim dividends of Rs. 1.00 and Rs. 4.00 per share respectively whilst On’ally Holdings and Cargills announced their final dividend of Rs. 0.43 and Rs. 3.20 per share respectively.