Colombo stock market gathers more momentum ahead of Independence Day

• Indices gain by near 2%; Turnover hits one-and-half-month high; net foreign inflow nears Rs. 2 b

The Colombo stock market gathered more momentum yesterday with indices gaining by nearly 2%, turnover hitting one-and-half-month high and net foreign inflow of Rs. 900 million. 

A rebound in investor sentiment, both local and foreign saw the active S&P SL20 Index gain by 1.8% and the benchmark by 1.7%. This helped the Colombo stock market to scale higher for the third consecutive week with the ASPI gaining 219.82 points (2.45%) and the S&P SL20 increasing 48.64 points (1.73%). Turnover averaged Rs. 2.18 billion improving from Rs. 1.74 billion last week.

Yesterday the CSE saw net foreign inflow of Rs. 893.4 million boosting the month-to-date figure to Rs. 1.3 billion and year-to-date to Rs. 1.8 billion.

For the sixth consecutive day, net foreign buying topped in JKH at Rs. 371.6 million followed by TJL at Rs. 270 million and Aitken Spence Rs. 268 million.

The market’s turnover crossed Rs. 4 billion for the first time since 21 December 2022 , boosted by off-board transactions in NTB (Rs. 1.4 billion), and JKH (Rs. 267 million).

Asia Securities said the indices turned upbeat in the shortened trading session on Friday on the back of continued buying in banking sector counters.

The ASPI gained 156 points (+1.7%) to close at 9,179 while the S&P SL20 index ended at 2,864 (+51 points or +1.8%).

The Banking sector index gained 5.1%, driven by price gains in SAMP (+3.1%), COMB (+7.0%), COMBX (+4.4%), NDB (+6.5%), HNBN (+4.6%), HNBX (+7.6%), DFCC (+7.4%), and PABC (+3.4%). Similarly, improved buying was observed in TJL (+9.3%), SPEN (+3.4%), DIAL (+5.3%), and AGST (+3.4%).

Asia said the ASPI commenced the session with a sharp gap-up of 85 points at 9,107 and touched a high of 9,179 (+157 points) in the first hour of trading. Thereupon, the index consolidated and traded steadily in the range of 9,175-9,190 for the rest of the session.

COMB (+35 points), SAMP (+13 points), and HNB (+11 points) were the top contributors to the ASPI during the session. The breadth of the market ended positive with 127 stocks recording price gains and 52 settling with losses for the day.

First Capital said the bourse closed the week on a positive note while recording an intraday gain of 156 points and a one-and-half-month high turnover.

It said optimistic Investor sentiment was largely on the back of progression of debt restructuring negotiations, as the Paris Club agreed to provide financing assurances to the country and Sri Lanka’s bondholders prepared to engage in debt restructuring talks with the authorities.

Accordingly, the index started on a solid footing and continued to surge high as investor interest continued on Banking sector counters and index heavyweights which led the market to close the week at 9,179, gaining 156 points.

NDB Securities crossings were witnessed in Nations Trust Bank, John Keells Holdings, Dialog Axiata, Teejay Lanka and Lankem Ceylon, accounting for 41.6% of the turnover.

It said mixed interest was observed in Aitken Spence, Expolanka Holdings and Lanka IOC whilst retail interest was noted in Softlogic Capital, Browns Investments and LOLC Finance.

The Banking sector was the top contributor to the market turnover (due to Nations Trust Bank) whilst the sector index gained 5.07%. The share price of Nations Trust Bank increased by Rs. 1.60 (2.99%) to Rs. 55.20.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Aitken Spence) whilst the sector index increased by 1.18%. The share price of John Keells Holdings gained Rs. 1.25 (0.87%) to Rs. 144.75.

The share price of Aitken Spence recorded a gain of Rs. 5 (3.45%) to Rs. 150.

Teejay Lanka and Softlogic Capital were also included among the top turnover contributors. The share price of Teejay Lanka moved up by Rs. 3.40 (9.32%) to Rs. 39.90. The share price of Softlogic Capital appreciated by 70 cents (4.32%) to Rs. 16.90