Colombo stock market returns to positive territory eyeing year-end

The Colombo stock market returned to positive territory after a week in the bearish mode with both indices up on moderate turnover.

The active S&P SL20 gained by 1.22% and the benchmark ASPI by 0.87%. Turnover was Rs. 1.3 billion involving 82.6 million shares. The market also saw continued net foreign inflow.

Asia Securities said following seven consecutive sessions of price losses, the indices closed in the green on Tuesday lifted by price gains in LIOC (+4.1%), HHL (+5.3%), BIL (+2.9%), RICH (+9.4%), LOLC (+3.7%), and SLTL (+5.2%).

On the flip side, EXPO (-1.1%), CFVF (-1.5%), and Softlogic group stocks AAIC (-3.8%), SCAP (-4.3%), and CRL (-1.9%) closed in the red.

Asia said the ASPI crossed the 8,500 mark in early trading and hovered in the range of 8,450-8,500 for the rest of the session. The breadth of the market closed positive with 105 price gainers and 74 decliners.

Turnover was supported by CARG (Rs. 250 million), LIOC (Rs. 172 million), AAIC (Rs. 146 million), and HHL (Rs. 118 million).

Asia also said foreigners recorded a net inflow of Rs. 373.1 million while their participation increased to 14.7% of turnover (Friday 2.9%). Net foreign buying topped in CARG at Rs. 250.2 million and selling topped in TESS at Rs. 1.5 million. Crossings accounted for 26.5% of turnover with 1 crossing recorded in CARGN (Rs. 250.2  million) and 2 crossings in HHL (Rs. 100.0 million).

First Capital said the Bourse reverted to the green zone as retailers pounced on battered down stocks after ASPI fell nearly 5.5% during the past seven trading days.

As investor participation reactivated post-holiday, the index started on a solid footing and continued to trade positively throughout the session. Eventually, a sideways movement was witnessed towards the end of the session, yet the market managed to close the day at 8,453, gaining 73 points. Moreover, high retail participation was witnessed on index heavyweights mainly LIOC and EXPO during the session.

NDB Securities said the ASPI closed in the green as a result of price gains in counters such as Richard Pieris & Company, Lanka IOC and LOLC Holdings.

It said high net worth and institutional investor participation were noted in Cargills and Hemas Holdings. Mixed interest was observed in Lanka IOC, Softlogic Life Insurance and Expolanka Holdings whilst retail interest was noted in SMB Leasing nonvoting, Browns Investments and Softlogic Capital.

The Food & Staples Retailing sector was the top contributor to the market turnover (due to Cargills) whilst the sector index edged up by 0.02%. The share price of Cargills closed flat at Rs. 235.

The Capital Goods sector was the second highest contributor to the market turnover (due to Hemas Holdings) whilst the sector index increased by 1.10%. The share price of Hemas Holdings recorded a gain of Rs. 2.90 (5.25%) to close at Rs. 58.10.

Lanka IOC, Softlogic Life Insurance and Expolanka Holdings were also included among the top turnover contributors. The share price of Lanka IOC gained Rs. 8.25 (4.07%) to close at Rs. 210.75. The share price of Softlogic Life Insurance moved down by Rs. 2.80 (3.80%) to close at Rs. 70.90. The share price of Expolanka Holdings declined by Rs. 2 (1.09%) to close at Rs. 181.