CB moves boost investor sentiment at CSE

Investor sentiment on blue chips improved yesterday following latest stimulus moves by the Central Bank in tandem with a rise in turnover at the Colombo stock market.

Acuity Stockbrokers said the Bourse ended on a positive note as the ASPI increased by 0.87% or 42.68 points to close at 4,958.24 points, while the S&P SL20 Index also increased by 2.02% or 41.99 points to close at 2,121.11. Turnover increased by 98.2% relative to Tuesday to amount to Rs. 2.1 billion while crossings for the day amounted to 14.2% of the day’s total turnover. 

Foreign investors meanwhile, recorded a net outflow of Rs. 0.62 billion over the day compared to a net outflow of Rs. 0.22 billion on Tuesday.

First Capital said the Bourse ended in the positive territory for the second consecutive session on the back of SRR reduction which boosted the banks liquidity. 

“The market witnessed an upward movement since the beginning of the session and reached its intraday high of 4,983 before experiencing a slight drop during the last few minutes of trading and closing at 4,958 gaining 43 points,” First Capital said. 

Parcel trades contributed to 14% of the turnover for the session. ASPI was uplifted predominantly due to the gain in prices of CARG & DIAL. Market experienced a low foreign participation dominated by the selling side resulting in a net outflow, it added.

NDB Securities said The ASPI closed in green as a result of price gains in counters such as Cargills, Dialog Axiata and John Keells Holdings. A similar behaviour was also witnessed in the S&P SL20 which gained by 2%. 

It said high net worth and institutional investor participation was noted in Commercial Bank, John Keells Holdings and Hemas Holdings. Mixed interest was observed in Hatton National Bank and LOLC Holdings, whilst retail interest was noted in Access Engineering, First Capital Holdings and Tokyo Cement Company. Furthermore, foreigners remained active closing as net sellers.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank, Hatton National Bank nonvoting and Hatton National Bank) whilst the sector index gained 2.40%. The share price of Commercial Bank increased by Rs. 1.10 (1.60%) to close at Rs. 69.90. The share price of Hatton National Bank nonvoting gained Rs. 5.20 (6.93%) to close at Rs. 80.20 whilst the share price of Hatton National Bank appreciated by Rs. 4.30 (4.28%) to close at Rs. 104.80.

Capital Goods sector was the second highest contributor to the market turnover (due to Hemas Holdings) whilst the sector index increased by 1.30%. The share price of Hemas Holdings moved down by Rs. 0.20 (0.33%) to close at Rs. 59.80.

LOLC Holdings was also included amongst the top turnover contributors. The share price of LOLC Holdings recorded a gain of Rs. 2.30 (1.92%) to close at Rs. 122.00.