Investor sentiments improve at Colombo stock market

The Colombo stock market yesterday fared better with solid gain by indices and improved investor sentiment.

The indices gained by over 1% whilst turnover was Rs. 1.5 billion involving 62.4 million shares. The market also saw a welcome return of net foreign buying though modest. 

Asia Securities said following a subdued opening, the indices gathered positive momentum as the session progressed with the ASPI retesting the 9,200 levels on the back of price gains in HAYL (+4.6%), SLTL (+5.4%), BIL (+5.0%), VONE (+2.4%), LOFC (+3.3%), and LOLC (+2.8%). 

On the other hand, a notable pick-up in investor buying interest was witnessed in SUN (+2.0%), LION (+3.1%), DIST (+8.5%), and GRAN (+6.9%) during the session. Sectorally, banking sector counters ended mixed with PABC (+5.0%), DFCC (+4.6%), COMBX (+2.4%), UBC (+2.2%), COMB (+0.6%), and NDB (+2.7%) recording price gains, and HNB (-0.7%), SEYBX (-1.4%), HNBX (-1.4%), SEYBN (-4.1%), and NTBN (-0.2%) closing with losses. 

Turnover was led by HAYL (Rs. 186 million), SAMP (Rs. 143 million), and LIOC (Rs. 93 million). 

Asia said the ASPI initially reached a low of 9,142 (-18 points) in early hours, however regained ground subsequently and crossed the 9,200 mark to reach a four-month high at 9,256 (+96 points). HAYL (+20 points), EXPO (+8 points), and VONE (+8 points) came in as the biggest contributors to the ASPI for the day. The breadth of the market ended positive with 104 price gainers and 69 decliners.

Foreigners recorded a net inflow of Rs. 40.7 million. Net foreign buying topped in LION at Rs. 53.1 million and selling topped in UBC at Rs. 38.7 million.

First Capital said the Bourse continued to rally for the sixth consecutive day while hitting a 4 ½ -month high, as high net worth and institutional investors’ interest persisted mainly on the fundamentally strong counters and blue chip companies during the session. Index displayed slight volatility in the beginning yet gradually recovered and gained sharply to break the 9,200 level to close the day at 9,256 gaining 96 points. 

After the weighted average yields recorded only a marginal dip during yesterday’s weekly bill auction, Treasury counters displayed a dull performance during the day. Meanwhile, as retailers continued to be on the sidelines waiting for a clear direction on the macroeconomic front (IMF approval), turnover skid to Rs. 1.5 billion (18% less of monthly average turnover of Rs 1.9 billion). Off-board transactions of SAMP and HAYL together contributed 7% to the market turnover, accordingly, Food, Beverage and Tobacco and Capital goods sectors jointly accounted for 46%.

NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank, Hayleys, and John Keells Holdings. Mixed interest was observed in Lanka IOC, Sri Lanka Telecom and Sunshine Holdings whilst retail interest was noted in Browns Investments, Union Bank and SMB Leasing. 

The Food, Beverage & Tobacco sector was the top contributor to the market turnover whilst the sector index gained 2.05%. 

The Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys and John Keells Holdings) whilst the sector index increased by 1.08%. The share price of Hayleys increased by Rs. 3.40 (4.63%) to Rs. 76.90. The share price of John Keells Holdings appreciated by Rs. 1.25 (0.91%) to Rs. 138.75.

Sampath Bank, Lanka IOC and Sri Lanka Telecom were also included among the top turnover contributors. The share price of Sampath Bank closed flat at Rs. 48.90. The share price of

Lanka IOC moved down by Rs. 3.25 (1.60%) to Rs. 200.00. The share price of Sri Lanka Telecom recorded a gain of Rs. 4.50 (5.36%) to Rs. 88.50.

Separately Overseas Realty announced its first and final dividend of Rs. 1.25 per share.