The Colombo stock market yesterday experienced a subdued start in a fresh week, with indices mixed and relatively low turnover, while foreign investors were net buyers for the third consecutive session.
The All Share Price Index gained by over 12 points, or 0.16%, while the S&P SL20 declined by over 12 points, or 0.41%. Turnover was Rs. 2.6 billion as opposed to last week’s average of Rs. 5 billion.
First Capital said the bourse closed flat but in the green for the second consecutive day with ASPI managing to eke a marginal gain, although S&P SL20 ended in the red due to price decline in blue chip counters, while turnover posted a nearly one-week low.
“Index rocketed to its intraday high of 8,124 during the initial minutes of trading, however, shortly reversed to a steep downtrend, hitting its intraday low of 8,040, followed by a recovery during the early hours of trading and again during mid-day. Later, the index displayed a gradual upswing for the rest of the day, eventually closing at 8,101, advancing two points,” First Capital added.
It said turnover was led by the Transportation sector, followed by the Materials sector, accounting for a joint contribution of 52%.
Asia Securities said concerns over increased COVID-19 cases during the weekend coupled with lower-than-expected earnings results reported by certain local manufacturing companies induced a negative sentiment, which weighed on the indices during early hours of trading.
The ASPI declined by 79 points within the first 30 minutes of trading while, in line with the ASPI, the more liquid S&P SL20 index reached an intra-day low of 3,021 (-36 points) due to price declines in TKYO and JKH.
“Subsequently, the market gained momentum built on buying interest from investors as they were seen capitalising on price drops in fundamentally strong stocks. As a result, the ASPI recovered its early losses and closed in green for the second straight day. EXPO, the top contributor to the index with over 23 points, extended gains throughout the session on the back of strong HNI buying and accounted for 39% of turnover,” Asia said.
It also said net foreign inflow of Rs. 25 million was recorded for the third consecutive day, driven by activity in tile manufacturing companies. Estimated net foreign buying topped in RCL at Rs. 7.2 million and net foreign selling topped in LLUB at Rs. 5.4 million.
NDB Securities said the ASPI edged up as a result of price gains in counters such as Expolanka Holdings, Browns Investments and Ambeon Capital.
It said high net worth and institutional investor participation was noted in Expolanka Holdings, HNB Assurance and Hatton National Bank. Mixed interest was observed in Tokyo Cement Company non-voting, Ambeon Holdings and Royal Ceramics, while retail interest was noted in Browns Investments, SMB Leasing non-voting and Kotagala Plantations Rights.
The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), while the sector index gained 7%. The share price of Expolanka Holdings increased by Rs. 5.30 (7.03%) to close at Rs. 80.70.
The Materials sector was the second highest contributor to the market turnover (due to Tokyo Cement Company non-voting), while the sector index decreased by 2.76%. The share price of Tokyo Cement Company non-voting moved down by Rs. 6.10 (10.76%) to close at Rs. 50.60.
Browns Investments, Ambeon Holdings and Royal Ceramics were also included among the top turnover contributors. The share price of Browns Investments gained Rs. 0.20 (3.03%) to close at Rs. 6.80. The share price of Ambeon Holdings recorded a gain of Rs. 3.20 (9.47%) to close at Rs. 37. The share price of Royal Ceramics declined by Rs. 0.60 (1.52%), closing at Rs. 39, while foreign holdings increased by 185,000 shares.