Colombo bourse gathers more momentum

• LOLC gains by Rs. 126.25, or 16%, to close at Rs. 894.25 after touching an intra-day high of Rs. 917
• If not for LOLC the ASPI would have closed negative

The Colombo stock market gathered more momentum yesterday with both indices gaining by over 1% on the back of healthy turnover, whilst LOLC shot to fame yet again.

The All Share Price Index (ASPI) gained by 1%, or over 111 points, and the S&PSL20 improved by 1.56% or over 57 points. LOLC saw 1.1 million of its shares change hands via 2,814 trades for Rs. 921 million. It closed at Rs. 894.25, up by Rs. 126.25 or 16.4%. It touched an intra-day high of Rs. 917 and a low of Rs. 770. Investors were speculating that LOLC may cross the magical Rs. 1,000 share price today. However, if not for LOLC’s meteoric rise ASPI would have closed negative.

Turnover was Rs. 6.6 billion involving over 216 million shares.

Asia Securities said both benchmark indices advanced more than 1% owing to sharp price gains in LOLC, while turnover remained robust supported by activity in LOLC, BIL and LOFC.

“Following a 63-point gap up opening, the ASPI moved within the range of 10,820-10,870 till afternoon trade. The index subsequently witnessed a 93-point spike in the final hour of trading to an intra-day high of 10,951 (+134 points) and ended the session stabilizing at 10,929 (+111 points),” Asia said.

“Similarly, the more liquid S&P SL 20 index remained in positive territory throughout the session and importantly, scaled an all-time closing high at 3,748 (+49 points) surpassing its previous high of 3,709 recorded a month ago.

“Recording a sharp 16.4% gain, LOLC contributed the most to the ASPI during the session (134 points). Excluding LOLC’s contribution, the ASPI was down 23 points at market close. Overall, 100 stocks posted price gains during the session and 98 ended with price losses.”

Asia also said foreigners recorded a net outflow of Rs. 156 million while their participation increased to 2.1% of turnover (previous day 1.4%). Net foreign buying topped in HNB.N at Rs. 13.3 million and net selling topped in BOGA at Rs. 139 million.

First Capital said the bourse rallied with ceaseless gains for the second day. It said the index witnessed an upswing with sizable volatility throughout the session while hitting an intraday high of 10,960 during the latter part of the session. Afterwards, the market displayed a sideways movement as the index trimmed some of the early gains ahead of the closing at 10,929, gaining 111 points. Turnover was led by a joint contribution of 47% from the Diversified Financial and the Capital Goods sectors.

NDB Securities said high net worth and institutional investor participation was noted in Brown & Company and LOLC Holdings. Mixed interest was observed in Bogala Graphite Lanka, Expolanka Holdings and ACL Cables, whilst retail interest was noted in Browns Investments, Lanka Orix Finance and Sierra Cables.

Diversified Financials sector was the top contributor to the market turnover (due to LOLC Holdings and Lanka Orix Finance) whilst the sector index gained 2.53%.

The share price of Lanka Orix Finance moved down by Rs. 1.20 (4.38%) to close at Rs. 26.20. The Capital Goods sector was the second highest contributor to the market turnover (due to ACL Cables) whilst the sector index increased by 1.43%.

Browns Investments, Bogala Graphite Lanka and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Browns Investments gained Rs. 0.40 (3.60%) to close at Rs. 11.50. The share price of Bogala Graphite Lanka recorded a gain of Rs. 27.75 (23.82%) closing at Rs. 144.25. The share price of Expolanka Holdings declined by Rs. 0.50 (0.21%) closing at Rs. 232.50.

Separately, JAT Holdings announced an interim dividend of 32 cents per share.