CSE struggles to remain on the up

The Colombo stock market struggled its way to close on the up amidst healthy turnover.

The active S&P SL20 gained by 1.5 points or 0.05% and the benchmark ASPI was up 11.2 points or 0.11%. Turnover was Rs. 881 million involving 35.6 million shares.

Asia Securities said the indices edged higher mainly driven by MELS (+3.2%) while price increases in LMF (+2.1%), MGT (+1.2%), DIAL (+1.9%), and VONE (+4.0%) supported the ASPI during the session. Moreover, TJL (+1.6%), AAIC (+4.1%), and CTC (+1.8%) saw renewed buying interest during the session. On the flipside, PLC (-1.0%), BIL (-2.3%), AGST (-1.5%), NDB (-4.9%), NTBN (-1.4%), and DFCC (-1.3%) settled with losses.

MELS (+13 points) contributed the most to the ASPI, followed by CTC (+5 points), and SPEN (+5 points). NDB (-10 points), EXPO (-5 points), and HNBN (-5 points) ended as the biggest laggard on the index. The breadth of the market was positive with 84 price gainers and 72 decliners.

Turnover was led by HNBN (Rs. 88 million), JKH (Rs. 72 million), LMF (Rs. 61 million), and RCL (Rs. 59 million).

Foreigners recorded a net outflow of Rs. 10.2 million. Net foreign buying topped in JKH at Rs. 20.6 million and selling topped in MELS at Rs. 31 million.

First Capital said the bourse swung between red to green throughout the trading session and yet managed to close in the green with a marginal 11 point gain as selling pressure on banks was offset by price appreciations from consumer and index heavyweight shares. Furthermore, continued investor interest was seen on Consumer sector counters: notably, LMF and DIST whilst RCL saw an increased interest during the first few hours of the session, banking sector shares continue to trade on dull sentiment amidst flat results reported for the 4Q 2023 period.

NDB Securities said high net worth and institutional investor participation was noted in LB Finance, Hatton National Bank and Melstacorp. Mixed interest was observed in John Keells Holdings, Royal Ceramics and Distilleries whilst retail interest was noted in Browns Investments, Dialog Axiata and Lanka Milk Foods.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Royal Ceramics) whilst the sector index gained 0.49%. The share price of John Keells Holdings gained one Rupee to Rs. 192.50. The share price of Royal Ceramics recorded a gain of 10 cents to Rs. 29.60.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Lanka Milk Foods and Melstacorp) whilst the sector index increased by 0.61%. The share price of Lanka Milk Foods moved up by 50 cents to Rs. 24.10. The share price of Melstacorp appreciated by Rs. 2.80 to Rs. 89.60.

Hatton National Bank was also included amongst the top turnover contributors. The share price of Hatton National Bank decreased by Rs. 1.50 to Rs. 159.50.

Separately interim dividends were announced by B.P.P.L. Holdings (18 cents per share), JAT Holdings (30 cents per share) and Distilleries (70 cents per share). Seylan Bank also declared a cash dividend of One Rupee and a scrip dividend of Rs. 1.50.