Positive start for CSE in 2023 with over 4% gain in January

The Colombo stock market ended the first month of the New Year with a gain of over 4% largely influenced by strong momentum earlier on as investor sentiment of late has been bearish. 

January saw the benchmark ASPI gained by 4.4% and the active S&P SL20 Index by 5%. Daily turnover averaged Rs. 1.86 billion, according to NDB Securities. 

The January performance is a welcome start for 2023 as the Colombo Stock Exchange (CSE) ended 2022 with losses with ASPI down 30.6% and S&P SL20 by 37.7%. Average daily turnover was Rs. 2.97 billion. 

Foreigners completed January from where they left 2022 as the month saw net inflow of Rs. 413 million with addition of Rs. 93.6 million yesterday. Net foreign buying topped in JKH at Rs. 109.2 million yesterday and selling topped in HNB.N at Rs. 25.5 million. Last year the market saw net foreign inflow of Rs. 30.6 billion, highest in 12 years.

In terms of the last day of trading in January, NDB Securities said the ASPI closed in red as a result of price losses in counters such as Vallibel One, LOLC Holdings and Hayleys. Turnover was Rs. 1.7 billion. 

It said high net worth and institutional investor participation was noted in John Keells Holdings, Lanka IOC, and Lanka Walltiles. Mixed interest was observed in Softlogic Life Insurance, Expolanka Holdings and Chevron Lubricants whilst retail interest was noted in LOLC Finance, Softlogic Capital and Browns Investments. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index lost 1.06%. The share price of John Keells Holdings recorded a loss of 50 cents to Rs. 139.50.

The Insurance sector was the second highest contributor to the market turnover (due to Softlogic Life Insurance) whilst the sector index increased by 1.31%. The share price of Softlogic Life Insurance increased by Rs. 2 to close at Rs. 120.50. Lanka IOC, Softlogic Capital and LOLC Finance were also included among the top turnover contributors. The share price of Lanka IOC lost Rs. 2 to close at Rs. 206.25. The share price of Softlogic Capital moved up by 20 cents to close at Rs. 15.90. The share price of LOLC Finance closed flat at Rs. 6.90.

Asia Securities said the indices closed in red for the second consecutive session on Tuesday on the back of price losses in heavyweight stocks VONE (-3.7%), LOLC (-3.6%), HAYL (-2.0%), LIOC (-1.0%), and BIL (-1.5%). Conversely, SAMP (+1.9%), AAIC (+1.7%), SCAP (+1.3%), LLUB (+1.7%), PACK (+6.8%), and MGT (+2.6%) recorded price gains for the day. 

Turnover was led by AAIC (Rs. 155 million), LIOC (Rs. 154 million), SCAP (Rs. 127 million), and JKH (Rs. 126 million). Asia said earlier, the ASPI commenced the session with a gap-up of 44 points at 8,935, however dropped early gains thereupon and oscillated within 8,860 to 8,900 for the rest of the session. 

Eventually, the index closed at 8,865 (-25 points) while the S&P SL20 index declined 18 points to end at 2,765. VONE (-13 points), LOLC (-10 points), and HAYL (-8 points) were the top laggards on the ASPI while SAMP (+7 points), CTC (+6 points), and CARG (+4 points) came in as the major index drivers during the session. The breadth of the market was negative with 60 price gainers and 116 decliners.

First Capital said the bourse slipped marginally down for the second consecutive day as Diversified Financials counters (mainly LOLC) and Capital Goods sector counters closed lower with profit booking. Index spiked slightly higher during the initial hour of the session as investors collected on banking and treasury counters anticipating an IMF bailout soon. 

However, it said the index began to plunge down into an hour from the opening with market participants selling on LOLC and closed in red at 8,865 with a marginal loss of 25 points.