CSE stays on the up despite low turnover

Friday, 9 May 2025 00:00 - - {{hitsCtrl.values.hits}}

The Colombo stock market remained on the up yesterday, though investor activity was moderate judging by value and volume of trading.

The benchmark ASPI gained by 84.3 points or 0.5% and the active S&P SL20 by 0.5%. Turnover was over Rs. 1.67 billion involving 127.1 million shares.

Foreign participation in the market activity remained at subdued levels with foreigners registering an outflow of Rs. 35.1 million.

First Capital said the Colombo Stock Exchange closed in positive territory, with the ASPI advancing by 84 points to end at 15,926, rebounding from the previous session’s decline. The index experienced a moderate rise in early trading, followed by relatively stable movements throughout the day.

Key contributions to the yesterday’s gains came from counters such as CINS, CARG, MELS, COMB, and SPEN, collectively driving the index upward.

Positive sentiment was observed across the board, with both HNW and retail investors showing active participation. Notably, HNW investors exhibited strong interest in Banking sector stocks.

Market activity was largely concentrated in the Food, Beverage and Tobacco sector, which accounted for 26% of total turnover. The Banking and Diversified Financial sectors followed, jointly contributing 27%. Overall market turnover stood at Rs. 1.7 billion, representing a 35.9% decline compared to the monthly average of Rs. 2.6 billion.

Asia Securities said the indices closed in the green yesterday, with the ASPI gaining 84 points (+0.5%) and the S&P SL20 index increasing 21 points (+0.5%), supported by price gains in PAP (+7.9%), LVEF (+7.0%), DIST (+5.6%), LMF (+1.5%), and MELS (+0.8%). Moreover, investors showed increased interest in NBFI sector stocks such as LFIN (+1.7%), SFIN (1.2%), and VFIN (+1.2%) during the session.

Turnover stood at Rs. 1.7 billion, led by R I L (Rs. 170 million), UBC (Rs. 107 million), and JKH (Rs. 106 million). CINSN (+25 points), CARG (+9 points), and MELS (+5 points) ended as the major drivers of the ASPI during the session. The market breadth was positive with 128 price gainers and 75 decliners.

NDB Securities said high net worth and institutional investor participation was noted in Union Bank, Hatton National Bank and John Keells Holdings. Mixed interest was observed in R I L Property, Lankem Developments and Distilleries, whilst retail interest was noted in Nation Lanka Finance, Lanka Credit and Business Finance and Softlogic Capital.

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Distilleries and Lankem Developments) whilst the sector index gained 0.51%. The share price of Distilleries recorded a gain of Rs. 2.20 to close at Rs. 41.80. The share price of Lankem Developments appreciated by 60 cents to close at Rs. 22.50.

The Banking sector was the second highest contributor to the market turnover (due to Union Bank), whilst the sector index increased by 0.39%. The share price of Union Bank gained 20 cents to close at Rs. 10.50.

R I L Property and John Keells Holdings were also included amongst the top turnover contributors. The share price of R I L Property increased by 50 cents to close at Rs. 16.90. The share price of John Keells Holdings moved up by 10 cents to close at Rs. 20.20.

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