Sentiment remains mixed at Colombo stock market

Investor sentiment remained mixed at the Colombo stock market with the two price indices moving in opposite directions, though turnover was healthy.

The ASPI gained by 140 points, or 1.4%, whilst the more active S&PSL20 dipped by 10 points or 0.3%. Turnover improved to Rs. 4.4 billion from Rs. 3.7 billion on Monday with 117.6 million shares traded, as opposed to a low 96.5 million the previous day.

Asia Securities said the indices showcased mixed performance as the ASPI crossed the 10,300 level during trading, while the more liquid S&P SL 20 index edged 10 points lower due to price declines in EXPO, LOLC, and VONE. Recording its best performance in the last seven sessions, the ASPI closed out with a gain of 140 points scaling to a record high of 10,272 at market close, mainly propelled by index heavy CLC.

Asia said that contrary to the surge in the ASPI, the breadth of the market remained negative as 81 stocks ended with gains against 111 price decliners. “Following an initial 41-point gap down, the ASPI gained momentum and trended upwards to notch another new all-time intraday high of 10,322 (+190 points) during the session,” it said, adding turnover was led by activity in EXPO which contributed 24% to the total. Foreigners recorded a net outflow of Rs. 541 million while their participation increased to 7.2% of turnover (previous day 3.6%). Net foreign buying topped in CIND at Rs. 5.7 million and net selling topped in MELS at Rs. 381 million.

First Capital said the bourse jumped back to the green zone from yesterday’s marginal fall while recording a one-and-a-half-week high gain.

“Index started with minimal volatility hitting an intraday low of 10,084 within the initial minute. Eventually, as traders were brimming with confidence, the market reacted positively and turned back to the green zone trading positively till the end. During the latter part of the session, the index hit an intraday high of 10,322 before closing at 10,272,” First Capital added.

It said turnover was led by the Transportation sector, followed by the Food, Beverage & Tobacco sector, accounting for a joint contribution of 47%.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Commercial Leasing & Finance, John Keells Holdings and Bukit Darah.

It said high net worth and institutional investor participation was noted in Melstacorp, Elpitiya Plantations and Sunshine Holdings. Mixed interest was observed in Expolanka Holdings, Royal Ceramics and Central Industries, whilst retail interest was noted in Browns Investments, Lanka Orix Finance and Commercial Leasing & Finance.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index lost 1.78%. The share price of Expolanka Holdings decreased by Rs. 3.75 (1.78%) to close at Rs. 207.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp and Browns Investments) whilst the sector index increased by 0.63%. The share price of Melstacorp gained 80 cents (1.40%) to close at Rs. 57.80. The share price of Browns Investments recorded a loss of 10 cents (0.93%) to close at Rs. 10.70.

Commercial Leasing & Finance and Royal Ceramics were also included among the top turnover contributors.

The share price of Royal Ceramics declined by Rs. 1.30 (2.23%) to close at Rs. 57.10.

Separately, John Keells Holdings and Royal Ceramics announced their interim dividends of 50 cents and Rs. 1.50 per share respectively.