CBSL policy rate cut boosts investor sentiment at CSE

The Colombo stock market gained amidst higher turnover with investors reacting positively to the 50 basis point policy rate cut by the Central Bank.

The benchmark ASPI gained by 100 points or 0.9% and the active S&P SL20 by 1.3% or over 42 points. Turnover was Rs. 2.4 billion involving  80.7 million shares.

Asia Securities said the market ended the day on a high note with the ASPI increasing by 100 points and the S&P SL20 index by 57 points. 

Banking counters extended price gaining momentum spearheaded by HNBN (+4.3%), HNBX (+3.7%), SEYBX (+5.7%), SAMP (+1.4%), PABC (+2.5%) and COMBN (+1.0%). 

HNBN (+22 points) came in as the biggest index mover for the day, followed by LOLC (+15 points), and BIL (+8 points). Overall, 109 stocks recorded price gains for the day while 71 settled with losses.

Market turnover was led by SAMP (Rs. 704mn), DFCC (Rs. 280mn), LOLC (Rs. 126mn), and HNB (Rs. 121mn). Crossings accounted for 22.5% of turnover with 7 crossings recorded in SAMPN (Rs. 390mn), 3 crossings in LOLCN (Rs. 79.3mn) 1 crossing each in HAYL (Rs. 53.3mn); and MGTN (Rs. 23.9mn)

Foreigners recorded a net outflow of Rs. 37.6mn. Net foreign buying topped in LOFC.N at Rs. 6mn and selling topped in HNB.N at Rs. 28.2mn.

First Capital said the bourse ended in the green zone, with a large number of investors participating. ASPI took off from the start of the day and kept its trajectory till the end of today’s session, following the Central Bank’s decision to cut policy rates by 50 bps, and ended at a 101 point increase to 11,336. Banking counters were the largest positive contributors to the index with HNB, LOLC and SAMP leading the way. The largest negative contributors to the index were TJL, FCT and SLTL. 

Off-board transactions contributed to 22% of the total market turnover, however retail participation too saw an increase. 

NDB Securities said high net worth and institutional investor participation was noted in Hayleys, LOLC Holdings and Sampath Bank. Mixed interest was observed in DFCC Bank, Hatton National Bank and Browns Investments whilst retail interest was noted in LOLC Finance, Hela Apparel Holdings and SMB Leasing. 

The Banking sector was the top contributor to the market turnover (due to Sampath Bank, DFCC Bank and Hatton National Bank) whilst the sector index gained 1.68%. The share price of Sampath Bank increased by Rs. 1.10 to Rs. 78.80. The share price of DFCC Bank gained 10 cents to Rs. 71.10. The share price of Hatton National Bank recorded a gain of Rs. 7.25 to Rs. 174.25.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Holdings) whilst the sector index increased by 2.75%. The share price of LOLC Holdings moved up by Rs. 21.50 to Rs. 401.50.

Browns Investments was also included amongst the top turnover contributors. The share price of Browns Investments appreciated by 30 cents to Rs. 5.50.