Investor sentiment improves at CSE

The Colombo stock market ended the week on a positive note thanks to the strong rally in the past two days in an apparent sign of rebound in investor sentiment.

The ASPI gained 129.05 points (1.39%) during the week while the S&P SL20 gained 4.73 points (0.17%).

Last week the ASPI gained by 5.28% and the S&P SL20 by 4.45% ending two weeks of losses.  Daily turnover this week averaged Rs. 1.6 billion down from Rs. 2 billion in the previous week.

Yesterday the market closed on the up with ASPI enjoying over 1.2% gain and the S&P SL20 by 0.3%. Turnover hit a recent high of Rs. 2.86 billion involving 93.57 million shares.

Asia Securities said the market ended the week on a solid footing on Friday as investors continued to take positions in banking sector counters in the backdrop of the recent appreciation of Sri Lankan Rupee and prospects of finalising the IMF agreement in late March.

The ASPI opened trading surpassing the 9,400 mark and moved steadily in between 9,420-9,450 for the rest of the session. Turnover reached a one-month high boosted by block trades in SAMP (Rs. 1.2 billion) which accounted for 41% of market turnover.

Sectorally, banking sector index recorded the biggest gain during the session (+3.8%) on the back of price gains in SAMP (+3.2%), COMBN (+3.0%), NDB (+7.1%), DFCC (+8.8%), NTBN (+3.4%), HNBN (+1.5%), HNBX (+7.7%), SDB (+19.7%), SEYBX (+6.2%), and PABC (+4.6%).

Apart from banks, DIST (+8.1%), HHL (+3.4%), SLTL (+3.3%), and TKYOX (+1.4%) also saw steady domestic buying during the session. VONE (+18 points), COMB (+17 points), and SAMP (+16 points) were the top index movers for the day while EXPO (-18 points) dragged the ASPI to the downside during the session.

The breadth of the market was positive with 117 price gainers and 80 decliners.

Asia also said foreigners recorded a net inflow of Rs. 15 million. Net foreign buying topped in EXPO at Rs. 31 million and selling topped in HHL at Rs. 27.6 million.

First Capital said the bourse edged up by over 250 points since the beginning of the month of March 2023 and closed the week on a positive note while recording the highest turnover in one-month as investors expect the IMF to finalise the agreement by the end of the month.

It said on the back of LKR appreciation by nearly 4.5%WoW against USD, retail investor participation continued to improve in the market. Accordingly, the index moved on a steep upward trajectory as the market opened with investor interest predominantly spanned on Banking and NBFIs counters and the bull-run continued throughout the session holding the index high and closed the day at a five-month high of 9,445, gaining 111 points.

SAMP witnessed a stake change of 1.9% totalling to 21.5 million shares at Rs. 56.6.

NDB Securities said crossings were witnessed in Sampath Bank, John Keells Holdings, and Lanka IOC, accounting for 43.2% of the turnover. Mixed interest was observed in Expolanka Holdings, Hemas Holdings and Capital Alliance whilst retail interest was noted in Co-Operative Insurance Company, Browns Investments and Distilleries.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank) whilst the sector index gained 3.80%. The share price of Sampath Bank increased by Rs. 1.70 (3.15%) to close at Rs. 55.60.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Hemas Holdings) whilst the sector index increased by 0.82%. The share price of John Keells Holdings recorded a gain of Rs. 1.75 (1.28%) to close at Rs. 139. The share price of Hemas Holdings appreciated by Rs. 2.20 (3.45%) to close at Rs. 66.

Expolanka Holdings and Distilleries were also included among the top turnover contributors. The share price of Expolanka Holdings lost Rs. 8.25 (4.72%) to close at Rs. 166.50. The share price of Distilleries moved up by Rs. 1.50 (8.11%) to close at Rs. 20.

Separately Softlogic Life Insurance announced its interim dividend of Rs. 3.50 per share.