ASPI ends almost flat after spike in first 40 minutes of trading; S&P manages to gain by only 0.8%
Investor sentiment and activity lacklustre as turnover hits a two-week low
Contrary to expectations, investors appeared unimpressed by the emphatic return of Basil Rajapaksa with the key Finance Ministry portfolio assigned as the Colombo stock market remained lacklustre.
The All Share Price Index closed just up by only two points, sliding from its early gain whilst the S&P SL20 improved by only 23 points, or 0.8%. Turnover was below average, hitting a new low of Rs. 1.2 billion with 48.7 million shares traded. Year to date net foreign selling was moving towards a half a billion mark after early this week it crossed the Rs. 27 billion figure.
Basil’s eventual portfolio was subject to much speculation with some insisting Premier Mahinda Rajapaksa will not give in and his younger sibling will only be a State Minister. Economic Development was tagged as an additional role by those who were confident Basil would be given Finance.
However, whilst Finance prevailed along with sanity, the creation of yet another Ministry for Economic Policies and Planning (also held by the Prime Minister) was seen as unwarranted.
Prior to yesterday, many private sector leaders and investors viewed the entry of Basil as a boost to business confidence. In that context, a more convincing sentiment was expected from the stock market yesterday.
“The market doesn’t have oxygen and needs some energy,” high-net-worth individual investor Nimal Perera told some of his peers as a general comment, as the CSE continues to struggle to come up with more robust sentiment and activity.
First Capital said the Bourse remained in the green zone for the second consecutive day while recording a nearly two-week low turnover.
“ASPI spiked in the first 40 minutes of trading, reaching an intraday high at 7,848, before declining steadily for the remainder of the day, closing at 7,812 gaining two points,” First Capital said.
It said turnover was led by the Banking sector, followed by the Diversified Financials sector, collectively accounting for a total contribution of 52%.
Asia Securities said the ASPI reached an intra-day high of 7,847 level (+38 points) during early hours, however, gradually declined and ended the session marginally higher. The more liquid S&P SL20 index opened on a positive note and remained in a range of 2,960-2,950, supported by price gains in JKH, EXPO and LOLC. It said turnover stood below the month-to-date average of Rs. 1.4 billion.
Banks, Diversified Financials, Capital Goods and Food, Beverage and Tobacco sectors led activity, collectively accounting for 71.5% of turnover.
Asia also said foreigners recorded a net outflow of Rs. 233 million while their participation increased to 28.3% of turnover (previous day 14.7%). Estimated net foreign buying topped in Commercial Bank of Ceylon PLC at Rs. 2.2 million and net foreign selling topped in Hatton National Bank PLC at Rs. 173.5 million.
NDB Securities said the ASPI edged up as a result of price gains in counters such as John Keells Holdings, Expolanka Holdings, and LOLC Holdings.
It said high-net-worth and institutional investor participation was noted in Hatton National Bank. Mixed interest was observed in LOLC Holdings, Hayleys Fabric, and Panasian Power, whilst retail interest was noted in SMB Leasing non-voting, Industrial Asphalts, and Browns Investments.
The Banking sector was the top contributor to the market turnover (due to Hatton National Bank), whilst the sector index gained 0.38%. The share price of Hatton National Bank increased by Rs. 0.75 (0.58%) closing at Rs. 131, whilst foreign holdings decreased by 1,324,722 shares.
Diversified Financials sector was the second-highest contributor to the market turnover (due to LOLC Holdings), whilst the sector index decreased by 0.27%. The share price of LOLC Holdings gained Rs. 3.25 (0.81%) to close at Rs. 405.00.
Hayleys Fabric, Panasian Power and Teejay Lanka were also included amongst the top turnover contributors. The share price of Hayleys Fabric moved up by Rs. 0.50 (2.59%) to close at Rs. 19.80. The share price of Panasian Power recorded a gain of Rs. 0.10 (2.44%) to close at Rs. 4.20. The share price of Teejay Lanka closed flat at Rs. 38.50.
(FT)