Colombo bourse begins new week with improved investor sentiment, turnover

The Colombo stock market began a fresh week with improved investor sentiment boosting turnover though foreigners continued to be net sellers.

Acuity Stockbrokers said the bourse ended on a positive note as the ASPI increased by 0.79% or 39.82 points to close at 5,105.12 points, while the S&P SL20 Index also increased by 0.75% or 16.28 points to close at 2,178.17.

Turnover increased by 17.8% relative to last Friday to amount to Rs. 1.03 billion while the turnover of Commercial Bank amounted to 10.5% of the day’s total turnover. 

Foreign investors recorded a net outflow of Rs. 0.09 billion over the day compared to a net outflow of Rs. 0.08 billion recorded last Friday.

First Capital said electoral heat sustained the positive sentiment for the third consecutive session on the back of heavy retail activities. The turnover was pushed over 1 billion after a week with Banking, Capital Goods and Material counters contributed 60% of the total. 

“Index experienced a continuous uptrend since the beginning of the session due to the buying interest in the construction and material entities reaching its intraday high of 5,112 before closing at 5,105 gaining 40 points,” First Capital said.  Market witnessed low foreign participation while completing two weeks of continuous net outflow, it added.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as CT Holdings, Ceylon Cold Stores and Melstacorp.

High net worth and institutional investor participation was noted in Commercial Bank and Cargills. Mixed interest was observed in Sampath Bank, Hatton National Bank non-voting and Tokyo Cement Company non-voting, whilst retail interest was noted in LOLC Holdings, Tokyo Cement Company and Access Engineering.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank, Hatton National Bank nonvoting and Sampath Bank) whilst the sector index gained 0.70%. 

The share price of Commercial Bank increased by Rs. 0.30 (0.40%) to close at Rs. 74.80 while the share price of Hatton National Bank non-voting gained Rs. 1.00 (1.18%) to close at Rs. 86.00. Furthermore, the share price of Sampath Bank recorded a gain of Rs. 2.50 (2.10%) to close at Rs. 121.60. Capital Goods sector was the second highest contributor to the market turnover whilst the sector index increased by 0.60%.

Tokyo Cement Company non-voting and LOLC Holdings were also included amongst the top turnover contributors. The share price of Tokyo Cement Company non-voting moved up by Rs. 1.40 (4.56%) to close at Rs. 32.10 while the share price of LOLC Holdings appreciated by Rs. 0.90 (0.72%) to close at Rs. 125.30.