High turnover continues at stock market

The Colombo stock market remained buoyant with high turnover whilst profit-taking and a rare dip by most-valuable Expolanka failed to keep indices from gaining.

All Share Price Index gained by 80 points or 0.8% and the S&P SL20 gained by 18 points or 0.5%. Turnover was Rs. 6.7 billion involving 272 million shares.

Asia Securities said the indices continued their record-breaking streak on the back of stronger-than-expected financial results reported by a string of companies in the ongoing earnings season.

“As successive record highs were recorded, the ASPI breached the 10,100 level for the first time and ended in green for the seventh consecutive session while the S&P SL20 index also closed higher to surpass its previous peak recorded on Monday (25),” Asia added. 

It said retail and HNI buying in BIL, EXPO and ACL collectively led activity with the latter ending with a 19% gain on boosted investor sentiment while turnover remained robust for the second straight day. 

“Following a volatile opening, the ASPI gained momentum largely supported by price increases in index-heavy CLC and BIL, and touched an intra-day high of 10,145 (+98 points) before stabilising during closing hours. The breadth of the market turned positive with 117 stocks ending higher against 80 price decliners,” Asia added. 

It said foreigners recorded a net outflow of Rs. 69.4 million while their participation remained flat at 1.5% of turnover (previous day 1.3%). Net foreign buying topped in RCL at Rs. 6.6 million and net foreign selling topped in CIND at Rs. 33.5 million. 

First Capital said the bourse continued to exhibit a bull run for the seventh straight session. 

“The index opened on a short-lived upswing, hitting an intraday low of 10,042 within the first half-hour of trading. Subsequently, as bulls began to dominate, market picked up and index peaked to an all-time high of 10,148 towards the latter part of the session. However, a sideways movement was exhibited followed by a downward trajectory, yet market displayed a recovery before closing at 10,127,” First Capital added.  

It said turnover was led by the Capital Goods sector, followed by the Food, Beverage and Tobacco sector accounting for a joint contribution of 62%. 

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

It said high net worth and institutional investor participation was noted in Renuka Hotels and Richard Pieris and Company. Mixed interest was observed in ACL Cables, Expolanka Holdings and Dipped Products, whilst retail interest was noted in Browns Investments, SMB Leasing non-voting and Sierra Cables. 

The Capital Goods sector was the top contributor to the market turnover (due to ACL Cables and Hayleys), whilst the sector index gained 1.44%. The share price of ACL Cables gained Rs. 10.50 (18.45%) to close at Rs. 67.40. The share price of Hayleys appreciated by Rs. 4 (3.86%) to close at Rs. 107.50.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments), whilst the sector index increased by 1.51%. The share price of Browns Investments increased by 80 cents (7.48%) to close at Rs. 11.50.

Expolanka Holdings and Dipped Products were also included amongst the top turnover contributors. The share price of Expolanka Holdings moved down by Rs. 1.75 (0.78%) to close at Rs. 223. The share price of Dipped Products recorded a gain of 30 cents (0.57%) to close at Rs. 53.20.

Separately, Richard Pieris & Company announced an interim dividend of 60 cents per share.