Feeble February for CSE after jubilant January

• ASPI loses 13.7% in Feb. whilst S&PSL20 dip was 15.58% 
• Thanks to dizzy heights in Jan., CSE remains positive YTD
• Net foreign selling tops Rs. 13 b mark in 2 months 

After a jubilant January, the Colombo stock market has recorded a feeble February, suffering a 13% dip, whilst turnover was half of what was experienced in the previous month.

The market saw second consecutive day of positive close with ASPI up 104 points or 1.4% and the S&PSL20 index up by over 2% or 67 points. Turnover was relatively better at Rs. 3 billion.

NDB Securities said the ASPI and the S&P SL20 lost 13.75% and 15.58% respectively in February, whilst recording an average daily turnover of Rs 5.43 billion.

First Capital said the market continued the drive in the positive direction for the second consecutive session while closing the month at 54% reduced average turnover compared to January 2021.

Year-to-date the ASPI is up 10.36% and S&PSL20 by 12.45%.

“The index experienced a slight dip followed by an uptrend during the first few minutes of trading, thereafter recorded a stagnant movement till mid-day. Later market witnessed a strong upward movement followed by a sideways movement and closed at 7,476 gaining 104 points,” First Capital said of yesterday’s trading. 

It said the banking sector continued to dominate the turnover for the session followed by the capital goods sector making a joint contribution of 56%. Parcel trades boosted the turnover for the session amounting to 23%.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Expolanka Holdings, Browns Investments and Commercial Bank.

It said high net worth and institutional investor participation was noted in Sampath Bank, John Keells Holdings and Commercial Bank. Mixed interest was observed in Expolanka Holdings, Dipped Products and Vallibel One, whilst retail interest was noted in Browns Investments and Piramal Glass. 

The banking sector was the top contributor to the market turnover (due to Sampath Bank), whilst the sector index gained 2.25%. The share price of Sampath Bank increased by Rs. 1.75 (1.14%) closing at Rs. 155.75 whilst foreign holdings decreased by 4,555,377 shares.

Capital goods sector was the second highest contributor to the market turnover (due to John Keells Holdings), whilst the sector index increased by 1.10%. The share price of John Keells Holdings moved up by Rs. 0.25 (0.16%) to close at Rs. 152.25. 

Expolanka Holdings, Browns Investments and Dipped Products were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 5.50 (13.41%) to close at Rs. 46.50. 

Moreover, the share price of Browns Investments recorded a gain of Rs. 0.40 (7.41%) to close at Rs. 5.80, whilst the share price of Dipped Products appreciated by Rs. 0.20 (0.40%) to close at Rs. 50.30.

Separately Chevron Lubricants announced an interim dividend of Rs. 2 per share whilst Commercial Bank announced a first and final dividend of Rs. 4.50 per share.

First Capital said the market experienced the highest net foreign outflow after nearly four weeks while recording low participation. Net foreign selling yesterday rose to new high of Rs. 753.3 million thereby made year to date figure to cross the Rs. 13 billion mark to Rs. 13.47 billion.

Estimated net foreign buying topped in COMB at Rs. 25.3 million and net foreign selling topped in SAMP at Rs. 709.5 million.