Bourse pauses before Budget but ends week on the up

The Colombo stock market yesterday paused ahead of the 2024 Budget presentation on Monday though ended the week on the up.

The ASPI gained 82.41 points (0.76%) during the week while the S&P SL20 gained 50.43 points (1.66%). Turnover averaged Rs. 1,589 million, improving from Rs. 690 million last week.

On Friday, the ASPI was down by 17 points and the S&P SL20 by 7 points. Turnover was Rs. 1 billion involving 25.3 million shares.

Asia Securities said following the positive start to the session, the indices reversed course and closed in red on Friday as investors continued profit-booking in front-line stocks ahead of the budget reading on Monday. 

The ASPI touched an intra-day high of 10,921 (+32 points), however faced downward pressure due to price losses in HNBN (-1.6%), LIOC (-2.2%), CFIN (-1.5%), MGT (-2.3%), TKYOX (-2.5%), FCT (-1.4%), and DIAL (-2.1%). 

The index gradually declined to 10,848 (-41 points) followed by a slight recovery to 10,872 (-17 points) at the back end of the session. HNBN (-8 points), MELS (-4 points), and LIOC (-3 points) came in as the biggest laggards on the ASPI.

Turnover was led by JKH (Rs. 184 million), WIND (Rs. 96 million), and COMBN (Rs. 72 million). 

A net foreign inflow of Rs. 236 million was recorded supported by JKH (Rs. 87 million), SAMPN (Rs. 44 million), and HNBN (Rs. 38 million). 

First Capital said the market closed in the red for the second consecutive session as investors opted to stay on the sidelines, seeking clarity before the upcoming Budget scheduled for Monday. 

Although the index initially showed gains in the early hours, it later reversed its course due to profit booking on blue-chip stocks, ending the day at 10,872, down by 17 points. Within the day, the Banking sector saw mixed interest, with SAMP contributing positively to the ASPI, while HNB and COMB dragged it into negative territory. However, foreign investors continued the buying spree on Banks. 

WATA’s stock price increased by 6% following the announcement of a dividend of Rs. 8 per share. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Commercial Bank, and Windforce. Mixed interest was observed in Sri Lanka Telecom, Sampath Bank and Watawala Plantations whilst retail interest was noted in UB Finance Company, Browns Investments and People’s Leasing & Finance. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index edged up by 0.04%. The share price of John Keells Holdings decreased by 25 cents to Rs 197.

The Banking sector was the second highest contributor to the market turnover (due to Commercial Bank and Sampath Bank) whilst the sector index decreased by 0.25%. The share price of Commercial Bank moved down by 50 cents to Rs. 86. The share price of Sampath Bank appreciated by 50 cents to Rs. 69.50.

Windforce PLC and Sri Lanka Telecom were also included amongst the top turnover contributors. The share price of Windforce gained 10 cents to Rs. 19.10. The share price of Sri Lanka Telecom recorded a gain of Rs. 2.50 (2.51%) to Rs. 102.