CSE gains to 5-month high as locals get bullish

• ASPI crosses 9,500 points level boost by banking stocks; Turnover higher at Rs. 3.5 b, foreigners net sellers

The Colombo stock market rose to a five-month high and improved turnover as local investor sentiment got a boost from positive news on IMF bailout as well as a strengthening Rupee whilst foreigners were net sellers. 

The benchmark ASPI shot up by 198 points or 2.1% and crossed the psychological 9,500-point level to close at 9,643 points, a level last seen five months ago. The active S&P SL20 gained by 1% or 31 points. Turnover was a robust one month high of Rs. 3.4 billion involving 115 million shares.

Asia Securities said the indices commenced the week on a buoyant note boosted by price gains SAMP (+4.5%), HNBN (+11.1%), NDB (+13.8%), HNBX (+10.8%), NTBN (+6.5%), SUN (+5.4%), RICH (+7.0%), and VONE (+10.4%). 

The ASPI opened trading with a gap-up of 94 points at 9,539 and trended upwards to cross 9,600 in early trading. Thereupon, the index hovered steadily in the range of 9,630-9,660 for the rest of the session. VONE (+38 points), HNB (+33 points), and SAMP (+23 points) came in as the major index movers during the session while EXPO (-38 points) and CINS (-14 points) were the top laggards on the ASPI. 

The breadth of the market closed positive with 120 price gainers and 91 decliners.

Turnover was led by EXPO (Rs. 370 million), SAMP (Rs. 292 million), and HHL (Rs. 237 million). Off-board transactions accounted for 11.8% of turnover on crossings in HHLN (Rs. 180.9 million), NTBN (Rs. 83.5 million), JKH (Rs. 67.5 million), RICHN (Rs. 46.0 million), and CICX (Rs. 26.1 million).

Asia also said following four sessions of net inflows, a net outflow of Rs. 181 million was recorded due to net selling in HHL (Rs. 202 million) while RICH (Rs. 87 million) topped net inflows. 

First Capital said the Bourse continued to rally for the fourth day while hitting a 5-month high, as investor confidence boosted over the assurance given by the EXIM Bank of China for the debt restructuring, coupled with the funding confirmation from ADB and WB after the IMF approval. 

It said investor participation heavily centred on Banking, NBFIs and Insurance sectors while HNB, SAMP and NDB remained the top contributors to ASPI. Index opened high and gained sharply during the first few minutes into trading to break 9,500 and continued to edge up higher during the remainder of the session to close the day at 9,643 gaining 198 points. 

As the global freight index reached an almost 2 ½-year low, the selling spree escalated on EXPO which fell by 10.2% during the day. 

NDB Securities said high net worth and institutional investor participation was noted in Hemas Holdings, Nations Trust Bank and John Keells Holdings. Mixed interest was observed in Expolanka Holdings, Sampath Bank and Lanka IOC whilst retail interest was noted in Browns Investments, Amana Bank and Industrial Asphalts. 

The Capital Goods sector was the top contributor to the market turnover (due to Hemas Holdings and John Keells Holdings) whilst the sector index gained 2.25%. The share price of Hemas moved up by Rs. 1.50 to Rs. 67.50. 

The share price of John Keells Holdings appreciated by one Rupee to Rs. 140.

The Banking sector was the second highest contributor to the market turnover (due to Sampath Bank) whilst the sector index increased by 5.76%. The share price of Sampath Bank gained Rs. 2.50 (4.50%) to Rs. 58.10.

Expolanka Holdings and Lanka IOC were also included amongst the top turnover contributors. The share price of Expolanka Holdings decreased by Rs. 17 (10.21%) to Rs. 149.50. The share price of Lanka IOC recorded a gain of Rs. 6 (3.03%) to Rs. 204.25.