2022 produces best ever New Year start for Colombo stock market

• ASPI up by over 3%, S&PSL by over 2.7%; turnover soars to nearly Rs. 10 b with net foreign inflows

The Colombo stock market enjoyed its best ever start for a New Year in 2022 as both indices rose sharply with a turnover of nearly Rs. 10 billion.

The All Share Price Index shot up by 3.27%, or 400 points, and the S&PSL20 gained by 2.7%, or 115 points. Turnover was Rs. 9.6 billion involving 774 million shares.

More importantly, 2022 also saw net foreign buying of Rs. 13 million against a net annual outflow of over Rs. 50 billion in 2021 and 2020.

Asia Securities said the market kicked off 2022 on a solid footing with the ASPI breaching the 12,600 level on the back of a record single-day gain of 399.8 points (+3.3%), boosted by strong retail and HNI buying in EXPO and LOLC group companies LOFC, CLC, LOLC and BIL. 

Turnover was led by BIL (Rs. 1.52 billion) LOFC (Rs. 890 million) and COOP (Rs. 681 million). 

“The ASPI commenced the first trading day of the year on a firm note surpassing the 12,400 level and remained buoyant throughout the session to eventually close at an all-time high of 12,626, while the S&P SL 20 index also witnessed a strong session closing out with a sharp gain of 110 points. The breadth of the market was positive with price gainers outnumbering decliners by a margin of 137 to 74.”

Asia also said foreigners recorded a net inflow of Rs. 12.9 million, while their participation remained flat at 1.2% of turnover (previous day 1%). Net foreign buying topped in COMB.N at Rs. 20.8 million while net foreign selling topped in COOP.N at Rs. 13.5 million. 

First Capital said the bourse led off the initial trading session of the New Year thriving in the green zone with an all-time high intraday gain of 400 points, while recording turnover at a one-month high, fuelled by heavy retail participation. 

“The Index opened on an upbeat note and continued to remain high as enthusiastic investors led the Bull Run with a heavy buying spree. The market closed at 12,626 after a fruitful trading session,” First Capital said, adding that LOFC and CLC were the major contributors to the ASPI. 

Kit said turnover was led by a joint contribution of 45% from the Food, Beverage & Tobacco sector and the Diversified Financials sector. 

NDB Securities said high net worth and institutional investor participation was noted in Prime Lands Residencies, Royal Ceramics and Ambeon Holdings. Mixed interest was observed in Lanka Orix Finance, LOLC General Insurance Ltd. and Expolanka Holdings, whilst retail interest was noted in Industrial Asphalts, Browns Investments and Co-Operative Insurance Ltd. 

The Food, Beverage & Tobacco sector was the top contributor to the market turnover with the sector index gaining 2.68%. The share price of Browns Investments increased by Rs. 1.10 (6.75%) to close at Rs. 17.40. The Diversified Financials sector was the second highest contributor to the market turnover with the sector index increasing by 6.70%. The share price of Lanka Orix Finance gained Rs. 6.80 (34%) to close at Rs. 26.80. Co-Operative Insurance Company Ltd., LOLC General Insurance Ltd. and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Co-Operative Insurance Company moved up by Rs. 1.60 (22.86%) to close at Rs. 8.60. 

The share price of LOLC General Insurance recorded a gain of Rs. 1.20 (5.85%) to close at Rs. 21.70. The share price of Expolanka Holdings appreciated by Rs. 11.50 (3.06%) to close at Rs. 386.75.