Investor sentiments turn choppy but CSE closes on the up

• Net foreign selling reached Rs. 860 m so far in June

The Colombo stock market experienced a choppy day of sentiments yesterday but managed to close on the up whilst foreigners persisted in their selling mode.

The active S&P SL20 gained by 0.8% and the benchmark ASPI by 0.6%. Earlier on the mid-day gains were higher. 

Turnover was Rs. 1.6 billion involving 116.8 million shares.

Net foreign selling amounted to Rs. 178.6 million increasing the month to date outflow to Rs. 860.6 million. 

Asia Securities said the indices continued their upward momentum for a fourth consecutive session led by banking stocks HNBN (+2.1%), HNBX (+1.2%), NDB (+4.0%), and SAMP (+2.0%) while retail counters LOFC (+9.1%), SCAP (+11.8%), EXPO (+4.0%), and AAIC (+4.7%) sustained their positive momentum during the session. Markedly, CIC (+2.0%), CICX (+2.3%), AEL (+4.1%), and DIST (+5.4%) saw improved investor buying interest. 

VONE (+16 points), HNBN (+14 points), and COMBN (+13 points) came in as the biggest index movers for the day. The breadth of the market remained positive with 97 price gainers and 69 decliners.

Turnover was led by HNBN (Rs. 215 million), SAMP (Rs. 171 million), LOFC (Rs. 152 million), and CICN (Rs. 144 million).

Off-board transactions accounted for 18% of turnover led by HNBN (Rs. 130 million), SAMP (Rs. 92 million), JKH (Rs. 35.4 million) and AEL (Rs. 31.9 million).

Foreigners ended on the selling side with a net outflow of Rs. 179 million led by SAMP (Rs. 105 million), and CICN (Rs. 66 million). Net foreign buying topped in DIAL at Rs. 9.2 million.

First Capital said the market commenced on a positive note and remained volatile throughout the day, and yet managed to close in the green backed by buying interest returning towards the latter part of the session. 

The Index closed positively at 9,070, gaining 55 points. Active retail participation was witnessed on LOFC and BIL, whilst high-net worth individuals continued to take positions during the day. Interest gained on the banking sector counter, which led the turnover and was a major contributor to the index. Furthermore, treasury shares slightly continued to pick up during the day, ahead of tomorrow’s bill auction. 

NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank, John Keells Holdings, and Hatton National Bank. Mixed interest was observed in CIC Holdings, Softlogic Capital and Hayleys whilst retail interest was noted in Blue Diamonds Jewellery Worldwide, LOLC Finance and Browns Investments. 

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank and Sampath Bank) whilst the sector index gained 0.82%. The share price of Hatton National Bank increased by Rs. 2.75 to Rs. 132.75. The share price of Sampath Bank gained by one rupee to Rs. 52.10.

The Materials sector was the second highest contributor to the market turnover (due to CIC Holdings) whilst the sector index increased by 0.54%. The share price of CIC Holdings recorded a gain of Rs. 1.20 to Rs. 61.20.

LOLC Finance and Softlogic Capital were also included among the top turnover contributors. The share price of LOLC Finance moved up by 50 cents to Rs. 6. The share price of Softlogic Capital appreciated by one rupee to close at Rs. 9.50.

Separately Ceylon Beverage Holdings announced its interim dividend of Rs. 28.84 per share.