CSE starts fresh week on a positive note

Tuesday, 24 May 2022 01:05 - - {{hitsCtrl.values.hits}}

The Colombo stock market began a fresh week on a positive note with all round improvement

The active S&PSL20 Index gained by 3.4% and the benchmark ASPI improved by 2.5%. Turnover was Rs. 2.7 billion involving 153 million shares.

Asia Securities said the indices ending sharply higher on the back of price gains in EXPO (+9.1%), BIL (+13.1%), LOLFC (+9.7%), LOLC (+10.7%), LIOC (+20.0%), and AAIC (+13.7%).

Turnover was boosted by EXPO (Rs. 1,031mn), which accounted for 38% of activity.

“The ASPI witnessed a gap-up of 156 points, followed by a 65-point drop in the first few minutes of trading. Following this, the ASPI reversed course and trended upwards the rest of the session on steady retail and HNI buying in heavyweight stocks. The ASPI briefly touched the 8,500 mark (+246 points) at the close of trading before settling at 8,474 (+209 points). On similar lines, the more liquid S&P SL20 index recorded a gain of 94 points (+3.4%),” Asia said.

The breadth of the market remained strong with 132 stocks recording price gains and 58 settling with losses.

Asia also said foreigners recorded a net outflow of Rs. 25.7mn. Net foreign buying topped in TJL at Rs. 12.3mn and selling topped in JKH at Rs. 32.9mn.

First Capital said the Bourse rallied for the second straight day after the Government secured foreign exchange to pay for fuel and cooking gas shipments that is likely to temporarily address the current supply shortages in the country.

“The Index spiked by over 150 points in the first few minutes of the session and continued to trade positively as investors got more clarity from the new budget proposal which includes privatization of loss-making entities, restructuring of tax collection, etc. Therefore, bulls managed to dominate the session and closed the day at 8,474, gaining 209 points,” First Capital said.

Despite being bullish, turnover was recorded at Rs. 2.7Bn compared to the average YTD turnover of Rs. 4.3Bn. Similar to the previous week, the Transportation sector dominates the turnover with a contribution of 38% while Food, Beverage & Tobacco sector contributed 20%, First Capital added.