Stock market struggles to stay green

The Colombo stock market struggled its way to close in Green with both indices gaining marginally amidst low investor activity.

On an erratic day of sentiments, the All Share Price Index gained by 11 points and S&PSL by 16 points whilst turnover was only Rs. 2.2 billion with just 73 million shares traded.

Asia Securities said the ASPI commenced the session on a positive note crossing the 12,500 level with a sharp gap-up of 128 points and touched an intra-day high of 12,588 within the first ten minutes of trading. 

However, the index pared early gains thereupon and slipped into negative territory as investors realised quick profits capitalising on recent sharp price increases in selected heavyweight counters.

After reaching an intra-day low of 12,392 (-68 points), the ASPI recovered gradually in the second half of the session and eventually edged higher to close in green for the third session in a row, supported by price gains in SPEN (+7.2%), SAMP (+2.1%) and DIAL (+7.3%). 

However, activity continued at moderate levels with daily turnover coming in at a four-month low. The breadth of the market ended negative with 78 price gainers and 121 decliners.

Asia also said foreigners recorded a net outflow of Rs. 42 million while their participation increased marginally to 2.7% of turnover (previous day 2.3%). 

Net foreign buying topped in EXPO at Rs. 9.6 million and selling topped in VFIN at Rs. 50 million.

First Capital said the Bourse continued to follow a bull run for the third straight session while closing the day with a marginal gain since the number of retail participants were gradually lessening day by day. 

Index spiked up by more than 100 points during the first few minutes but gradually slid down to an intraday low of 12,391 during mid-day.

“The Index seesawed throughout the trading session while swaying in and out from green to red zone. In the end, the index recouped a few losses and managed to close positively at 12,471, gaining 11 points,” First Capital said adding turnover was led by Diversified Financials and Capital Goods sectors accounting for a joint contribution of 42%.

NDB Securities said the ASPI edged up as a result of price gains in counters such as Aitken Spence, Sampath Bank and Dialog Axiata.

It said high net worth and institutional investor participation was noted in Royal Ceramics, Softlogic Life Insurance and LOLC Holdings. 

Mixed interest was observed in Expolanka Holdings, Vallibel Finance and Sunshine Holdings, whilst retail interest was noted in SMB Leasing nonvoting, Dialog Axiata and Browns Investments.

Diversified Financials sector was the top contributor to the market turnover (due to Vallibel Finance), whilst the sector index gained 0.22%. 

The share price of Vallibel Finance gained Rs. 3.50 to close at Rs. 55.

The Capital Goods sector was the second highest contributor to the market turnover (due to Royal Ceramics), whilst the sector index increased by 0.06%. 

The share price of Royal Ceramics recorded a gain of 60 cents to close at Rs. 71.90.

Expolanka Holdings, Sunshine Holdings and Softlogic Life Insurance were also included amongst the top turnover contributors. 

The share price of Expolanka Holdings decreased by Rs. 1.50 to close at Rs. 332.50. 

The share price of Sunshine Holdings moved down by Rs. 1 to close at Rs. 53.40. 

The share price of Softlogic Life Insurance declined by Rs. 9.50 to close at Rs. 140.