CSE recoups two weeks of losses as turnover crosses LKR 1bn

Sri Lanka, Oct 26 (Capital Leads) – The Colombo Stock Exchange (CSE) recorded its highest close in two weeks as the market turnover crossed more than LKR1 bn today for the second straight session, led by both local and foreign investor interest in banking sector stocks ahead of the quarterly earnings season.

ASPI records the sharpest one-day gain in a month: The broad market All Share Price Index (ASPI), gaining 1.10 percent from the previous session, extended 63.42 points to reach 5,831.96 points, its highest close since October 11, 2018.

While ASPI recorded its the highest one-day gain since September 09, 2018, more liquid S&P SL20 Index stood 69.68 points higher to reach 2,997.33 points, a 2.38 percent gain from the previous session.

Backed by sixteen crossings, turnover reaches LKR1.5 bn: Amid sixteen off-board transactions from Commercial Bank (COMB), Hatton National Bank (HNB) and Nestle (NEST) among others, daily turnover reached LKR1.5 bn (USD8.5 mn), nearly doubling the year-to-date average daily turnover of LKR768.1 mn (USD4.5 mn) as crossings made up 76 percent of the day’s turnover.

With 6.8 mn shares trading off-board, number of shares transacted stood at 19.6 mn, below the year-to-date average daily volume of 24.2 mn shares.

Foreign selling declines despite strong turnover: Foreigners sold stocks worth a net LKR48.3 mn (USD0.3 mn), nearly a fifth from the previous session as year-to-date net foreign outflow extended to LKR9.8 bn (USD 56.6 mn)

Banking stocks led by COMB makes the highest contribution to turnover: Commercial Bank, leading the turnover contribution with 35 percent, gained 2.3 percent in value today driven by local investor interest as 4.4 mn of its shares traded off-board at LKR108.0 – LKR109.5.

Meanwhile, foreign buying centred on Hatton National Bank and John Keells Holdings, which made up 15 percent and 10 percent of turnover respectively as the former traded 1.0 mn shares off-board at LKR205.0 – LKR210.0 and the latter 0.7 mn shares off-board at LKR137.5 – LKR140.0

Banks, finance and insurance sector, gaining 2.1 percent in value today, was the best-performing sector contributing 63 percent of the turnover, followed by beverage, food and tobacco stocks which declined by 0.1 percent making up 21 percent of the turnover.

Furthermore, SMB Leasing (non-voting) and Commercial Leasing & Finance were among the highest gainers of the market today while Adam Capital and Melstacorp were two of the most actively traded counters for the day.

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