CSE scrapes through to close on the up

The Colombo stock market sustained its positive run at the beginning of a new week though on thin volume.

The active S&P SL20 gained by 0.3% and the benchmark ASPI by 0.15%. Turnover was Rs. 710.4 million involving 31.4 million shares.

Asia Securities said the ASPI commenced the session on an upbeat note and touched an intra-day high of 8,823 (+69 points) in early trading. Nevertheless, the index moved downwards and reached a low of 8,747 (-7 points) before closing at 8,767 (+13 points) owing to a brief recovery at the back-end of the session. Front-line stocks JKH (+1.1%), AEL (+1.4%), BIL (+1.9%), CALT (+3.2%), CFVF (+3.7%), and MELS (+1.1%) closed in green while LIOC (-2.4%), LOFC (-3.8%), AAIC (-2.3%), and AGSTN (-1.9%) settled with losses. The breadth of the market was positive with 83 price gainers and 78 decliners.

Asia said turnover was led by JKH (Rs. 272 million), AEL (Rs. 45 million), and LIOC (Rs. 35 million).

Foreigners recorded a net inflow of Rs. 4 million. Net foreign buying topped in LLUB at Rs. 8.8 million and selling topped in ASIR at Rs. 5.7 million.

First Capital said after the significant gain recorded during the previous sessions, ASPI closed the day flat, extending the positive sentiment for the fourth straight day, displaying significant volatility as retailers remained on the sidelines waiting for a clear direction on the DDO process.

The Index started on a solid footing reaching an intraday high of 8,824, yet gradually sidelined as selling pressure extended on LIOC yet another day.

However, an optimistic buying spree on blue-chip counters (mainly JKH) led the market to sustain at green to close the day at 8,767, gaining 13 points. After interest rates were revised down by 250bps at the monetary policy meeting, Treasury counters continued to witness hefty collection.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in Lanka IOC, Capital Alliance and First Capital Holdings whilst retail interest was noted in Browns Investments, LOLC Finance and Access Engineering. Foreign participation in the market activity remained at subdued levels with foreigners closing as net buyers.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Access Engineering) whilst the sector index gained 0.70%. The share price of John Keells Holdings increased by Rs. 1.50 to Rs. 140. The share price of Access Engineering gained by 20 cents to Rs. 14.90.

Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Finance) whilst the sector index decreased by 0.20%. The share price of LOLC Finance declined by 20 cents to Rs. 5.

Lanka IOC and Browns Investments were also included among the top turnover contributors. The share price of Lanka IOC dipped by Rs. 3.25 to Rs. 129.75. The share price of Browns Investments gained by 10 cents to Rs. 5.30.

Separately LB Finance announced its final dividend of Rs. 3 per share.