CSE ends week on the up as investors sustain positivism

The Colombo stock market ended the week on the up thanks to a late rally fuelled by a rebound in investor sentiment. 

During the week the benchmark ASPI gained by 1.7% and the active S&P SL20 by 2.4%. Average daily turnover was Rs. 1.13 billion.

Asia Securities said indices closed in the green for the four consecutive sessions on Friday supported by a late-hour recovery. The ASPI touched an intra-day low of 12,291 (-20 points), however managed to close higher for the day at 12,314 (+4 points). PLC (+1.7%), HAYL (+1.2%), TJL (+1.7%), and HNBN (+0.5%) saw price gains during the session while LLUB (-1.5%), LOLC (-1.1%), VONE (-1.1%), and DIPD (-1.4%) ended with losses. COMB (+5 points), NTBX (+4 points), and HNBX (+3 points) came in as the major index movers for the day. Overall, 69 stocks closed higher while 100 ended with losses.

Turnover of Rs. 1.3 billion down from Rs. 1.6 billion on Thursday was led by HNBN (Rs. 256 million), SAMP (Rs. 172 million) and PLC (Rs. 69 million).

Asia also said foreigners recorded a net outflow of Rs. 137.7 million. Net foreign buying topped in CIC.X at Rs. 3.8 million while net foreign selling topped in HNB.N at Rs. 71.6 million.

First Capital said the bourse continued its upward trajectory for the 4th consecutive day, driven by growing investor confidence amid sufficient progress on the External Debt Restructuring and the negotiations with external bondholders. 

The banking sector counters, and blue chip companies continued to make significant contributions to the index majorly where COMB, JKH, HNB, HAYL and TJL emerged as the key contributors. However, the index started on a subdued tone, hitting its intraday low at 12,290 before recovering post midday and concluding the week at 12,314 gaining 4 points. 

Meanwhile, due to the low participation of traders, turnover decreased by 18.5% and marked a 21.9% decline from the month’s average standing of Rs. 1.6 billion. The Banking sector led the turnover at 45.1% as evident by the positive ratings upgrades by Fitch Ratings today. Moreover, Capital Goods and Diversified Financials sectors jointly contributed 26.6% to the overall turnover. 

NDB Securities said high net worth and institutional investor participation was noted in Hatton National Bank, Sampath Bank, and People’s Leasing & Finance. Mixed interest was observed in Access Engineering, Hayleys and DFCC Bank whilst retail interest was noted in Browns Investments, Prime Lands Residencies and Co-Operative Insurance Company. 

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank and Sampath Bank) whilst the sector index gained 0.47%. The share price of Hatton National Bank increased by one Rupee to Rs. 205.25. The share price of Sampath Bank gained 10 cents to Rs. 80.10.

The Capital Goods sector was the second highest contributor to the market turnover (due to Access Engineering and Hayleys) whilst the sector index increased by 0.33%. The share price of Access Engineering recorded a gain of 20 cents to Rs. 24.50. The share price of Hayleys appreciated by Rs. 1.10 to Rs. 96.10.

People’s Leasing and Finance was also included amongst the top turnover contributors and its share price gained 20 cents to Rs. 12.10.