CSE ends multiple weeks of gains as investors take profit

The Colombo stock market yesterday ended multiple weeks of gains as profit taking by investors led to negative closing. 

During the week, the ASPI declined by 51.73 points or 0.5% and the S&P by 108.06 points or 3.5%. It was the first weekly decline in over a month. 

Daily turnover averaged Rs. 4.2 billion, marginally lower from Rs. 4.8 billion in the previous week. 

Despite the loss in the week, the Colombo bourse yesterday gained largely supported by EXPO (+2.4%), LOFC (+1.3%), MGT (+6.6%), DIPD (+1.8%), and CIC (+2.7), Asia Securities said. 

It said price declines in LIOC (-3.6%), LOLC (-0.3%), ACL (-2.0%), and AAIC (-2.4%) dented the upward movement of the ASPI during the session. 

Turnover improved to Rs. 3.2 billion, improving from Rs. 2.7 billion on Thursday led by LIOC (Rs. 483 million), EXPO (Rs. 483 million), and LDEC (Rs. 296 million). 

Earlier, the ASPI crossed the 9,000 level at market open with a sharp gap-up 97 points. However, the index reversed course subsequently, touching a low of 8,935 and moved briefly in the range of 8,950-8,975 in mid-day trade. The ASPI saw a pickup to 9,017 (+106 points) at the back end of the session before settling at 8,976 (+65 points). The breadth of the market ended strong with price gainers outnumbering decliners by a margin of 148 to 70.

Asia also said foreigners recorded a net inflow of Rs. 40.5 million while their participation declined to 2.2% of turnover (previous day 3.9%). Net foreign buying topped in JKH at Rs. 40.7 million and selling topped in MGT at Rs. 15.9 million.

First Capital said the bourse recovered the losses and managed to extend the positive momentum yet another day while Plantation and Hotel sectors rallied with a substantial gain fuelling bullish optimism. Index started off on a solid footing and maintained its steep upward trajectory for the first few minutes of the session but experienced a brief dip afterwards as retailers continued to cut down margin positions on selected counters. 

Despite profit taking, the market recovered and climbed steadily throughout the remainder of the session before closing at 8,976, gaining 65 points.  Food, Beverage and Tobacco and Energy sectors continued to dominate the turnover throughout the week while jointly contributing 43% to the market turnover. 

NDB Securities said high net worth and institutional investor participation was noted in Lankem Developments, John Keells Holdings, and Bukit Darah. Mixed interest was observed in Lanka IOC, Expolanka Holdings and Hayleys Fabric whilst retail interest was noted in Browns Investments, Renuka Agri Foods and Beruwala Resorts. 

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Lankem Developments, Browns Investments and Renuka Agri Foods) whilst the sector index gained 1.06%. The share price of Lankem Developments moved up by Rs. 2.50 (11.42%) to close at Rs. 24.40. The share price of Browns Investments closed flat at Rs. 8.20. The share price of Renuka Agri Foods appreciated by Rs. 1.10 (14.67%) to close at Rs. 8.60.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index decreased by 3.47%. The share price of Lanka IOC decreased by Rs. 6.75 (3.59%) to close at Rs. 181.25.

Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 5.00 (2.36%) to close at Rs. 216.75.

Separately, the Lanka Hospitals Corporation announced its interim dividend of Rs. 2 per share.