CSE remains positive with improved turnover

The Colombo stock market remained positive for the second consecutive day with improved turnover as investors await key political developments.

The S&P SL20 gained by 1% and ASPI by 0.8%. Turnover was Rs. 1.1 billion involving 57 million shares.

Asia Securities said the indices continued their upward momentum mainly led by EXPO (+2.7%), BIL (+4.2%), LOFC (+4.2%), LOLC (+1.8%), SCAP (+3.8%), SAMP (+4.1%) and HAYC (+4.5%) while active counters LIOC (-3.2%), HNB (-1.6%), TKYON (-8.6%), TKYO (-2.0%) and AAIC (-0.4%) settled with losses. 

It said turnover was supported by EXPO (Rs. 308 million), BIL (Rs. 126 million), LIOC (Rs. 111 million), and LOFC (Rs. 107 million). The ASPI commenced the session on an upbeat note with a gap-up of 130 points at 7,432 and maintained positive momentum to scale an intra-day high of 7,460 (+158 points) within the first hour of trading. Thereupon, the index stabilised and hovered in the range of 7,350-7,390 for the rest of the session. The breadth of the market remained strong with 106 price gainers and 63 decliners.

Asia also said foreigners recorded a net outflow of Rs. 14.8 million. Net foreign buying topped in MELS at Rs. 3.5 million and selling topped in HNB at Rs. 16.3 million.

First Capital said the Bourse recorded gains for the second straight session with a faint improvement in investor sentiment over recent political developments in the country with the affirmed resignation of the President. Moreover, turnover improved driven by active retail participation and recorded at Rs. 1.1 billion reflecting a 42.6% improvement relative to the weekly average of Rs. 777.4 million.

“As the market opened, ASPI surged hitting an intraday high of 7,464. Subsequently the index moved on a downward trend with profit taking visible on selected stocks but managed to hold in the green before closing for the day at 7,366 gaining 64 points. Turnover was led by a joint contribution of 53% from the Transportation sector and Food, Beverage and Tobacco sector,” First Capital added.

NDB Securities said high net worth and institutional investor participation was noted in Nestle, Hatton National Bank and Malwatte Valley Plantations. Mixed interest was observed in Expolanka Holdings, Lanka IOC and LOLC Holdings, whilst retail interest was noted in Browns Investments, LOLC Finance and Softlogic Capital.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index gained 2.72%. The share price of Expolanka Holdings increased by Rs. 4.75 (2.73%) to close at Rs. 179.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments and Nestle Lanka) whilst the sector index increased by 1.22%. The share price of Browns Investments gained 30 cents (4.17%) to close at Rs. 7.50. The share price of Nestle Lanka appreciated by Rs. 7 (0.78%) to close at Rs. 901.50.

Lanka IOC and LOLC Finance were also included amongst the top turnover contributors. The share price of Lanka IOC moved down by Rs. 2.40 (3.23%) to close at Rs. 71.90. The share price of LOLC Finance recorded a gain of 30 cents (4.23%) to close at Rs. 7.40.