The Colombo stock market gained further momentum yesterday with both indices up amidst improved turnover.
The All Share Price Index (ASPI) gained by over 62 points or 0.87% and the more active S&PSL20 Index shot up by 2% or 60 points. Turnover amounted to Rs. 2.48 billion involving 69.17 million shares.
First Capital said stocks remained resilient sustaining the drive in the positive direction for a fourth consecutive session.
Capital Goods counters led the Rs. 2 billion plus turnover closely followed by Materials counters, making a joint contribution of 61%.
“Index recorded a bumpy upward trend during the day, recording an intra-day high of 7,299 and closing at 7,280 levels gaining 62 points for the day,” First Capital added.
Asia Securities said retail interest was observed again in export-oriented counters such as Hayleys and Dipped Products which witnessed significant price gains. “Net foreign selling in Sampath was absorbed by local investors,” it added.
NDB Equities said the ASPI closed in green as a result of price gains in counters such as Hayleys, Vallibel One and Royal Ceramics.
It said high net worth and institutional investor participation was noted in Hayleys. Mixed interest was observed in Haycarb, Sampath Bank and Dipped Products, whilst retail interest was noted in Swisstek, Vallibel One and Expolanka Holdings.
The Capital Goods sector was the top contributor to the market turnover (due to Hayleys and Royal Ceramics), whilst the sector index gained 2.51%. The share price of Hayleys increased by Rs. 6.60 (9.79%) to close at Rs. 74. The share price of Royal Ceramics moved up by Rs. 23.50 (8.45%) to close at Rs. 301.75.
The Materials sector was the second highest contributor to the market turnover (due to Dipped Products), whilst the sector index increased by 4.46%. The share price of Dipped Products gained Rs. 4.10 (8.32%) to close at Rs. 53.40.
Expolanka Holdings and Sampath Bank were also included amongst the top turnover contributors. The share price of Expolanka Holdings recorded a gain of Rs. 0.90 (1.95%) to close at Rs. 47.10. The share price of Sampath Bank appreciated by Rs. 1.10 (2.10%) closing at Rs. 53.50 whilst foreign holdings decreased by 1,321,500 shares.
Net foreign selling was Rs. 189 million lower in comparison to Rs. 344 million on Monday. The year-to-date net foreign outflow was Rs. 18.58 billion.
Estimated net foreign buying topped in DIPD at Rs. 5.8 million and net foreign selling topped in SAMP at Rs. 70.7 million.
Capital Trust said even though the current positive movement in the market is encouraging, it believes that market momentum will gather pace after the Sinhala and Tamil New Year holidays.
“Consequently, we advise investors to start accumulating a well-diversified portfolio of stocks which are cash generative, have strong earnings and revenue growth attributes and possess the ability to outperform over the longer term,” it added.