Bullish local investors power stock market to new high

• ASPI crosses 9,400 points; market capitalisation tops Rs. 4.2 t

The Colombo stock market yesterday rose to a new all-time high, fuelled by improved local investor sentiment and activity.

The All Share Price Index gained by 1%, or over 94 points, to close comfortably above 9,400 points for the first time in the CSE's history. The S&P SL20 was up 1.7% or 60 points, and short of 10 points to surpass its previous all-time high.

Year-to-date (YTD) ASPI has gained by 39% and S&P SL20 by nearly 33%. Market capitalisation is up 42% YTD to Rs. 4.2 trillion.

Turnover yesterday was Rs. 6 billion involving 238.4 million shares.Asia Securities said the market extended its record-breaking run with the ASPI closing above the 9,400 level for the first time in history, while the more liquid S&P SL20 index reached an eight-month high of 3,504 points.“The indices closed in green for the sixth-consecutive session on the back of price gains in index-heavy counters LOLC, BIL, and JKH, while a notable broad-based pickup in prices was witnessed in selected counters across sectors, indicating improved buying interest from investors,” Asia said.

“On the contrary, after posting sharp gains in the last three sessions, CLC and EXPO settled with price losses on profit taking. Market breadth remained positive with 119 price gainers against 79 decliners while turnover remained strong on retail and HNI activity in BIL and EXPO.” 

Foreigners recorded a net outflow of Rs. 24.5 million, while their participation declined to 0.5% of turnover (previous day 2.5%). Net foreign buying topped in Distilleries at Rs. 4.5 million and net foreign selling topped in Alliance Finance at Rs. 6.6 million.

First Capital said the bourse continued to exhibit a bull run for one straight week, while the index hit an all-time high of 9,434 for the third time in the month surpassing Tuesday’s high.

“Index started trading on an upbeat note, gaining 82 points, followed by slight volatility within the first few minutes of the session. Subsequently, with a sharp upswing, the index reached an intraday high of 9,448, and displayed a steady phase before closing at 9,434,” First Capital added.

It said turnover was led by the Food, Beverage and Tobacco sector, followed by the Capital Goods sector, accounting for a joint contribution of 52%.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Holdings, Browns Investments and John Keells Holdings.

It said high net worth and institutional investor participation was noted in John Keells Holdings, Brown & Company and Teejay Lanka. Mixed interest was observed in LOLC Holdings, Royal Ceramics and Melstacorp, while retail interest was noted in Browns Investments, Expolanka Holdings and Lanka Orix Finance. Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

The Food, Beverage and Tobacco sector was the top contributor to market turnover (due to Browns Investments), while the sector index gained 1.73%. The share price of Browns Investments increased by 70 cents (7.14%) to close at Rs. 10.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Royal Ceramics), while the sector index increased by 2.38%. The share price of John Keells Holdings recorded a gain of Rs. 7.50 (5.40%), closing at Rs. 146.50. The share price of Royal Ceramics appreciated by Rs. 1.60 (3.55%), closing at Rs. 46.70.

Expolanka Holdings and LOLC Holdings were also included among the top turnover contributors. The share price of Expolanka Holdings lost Rs. 1.75 (0.90%), closing at Rs. 193.25. The share price of LOLC Holdings moved up by Rs. 37.75 (6.47%) to close at Rs. 621.25.

Several more Hayleys Group companies announced interim dividends. Dipped Products declared a 95 cents per share first interim dividend, Alumex announced a 10 cents per share first interim and for Hayleys Fabric it was a 40 cents per share first interim. Haycarb on Tuesday announced an 80 cents per share first interim dividend.