Stock market breaks through 9,500-point barrier as it raises bar further

The Colombo stock market yesterday broke through the benchmark All Share Price Index’s 9,500-point psychological barrier as investors began a fresh week with improved sentiment though turnover was relatively low.  

The ASPI gained by over 100 points or 1% to close the day at 9,542, establishing a new high for the CSE. However, the S&P SL20 index struggled and closed almost flat. Turnover was Rs. 3.6 billion involving 228.3 million shares.

First Capital said the bourse jumped back to the green zone, starting the week with robust gains while surpassing the previous all-time high record, despite recording a one-week low turnover.

“The Index seesawed during the early hours of trading, hitting an intraday low of 9,393. As bulls began to dominate, the index peaked to an all-time intraday high of 9,553 during the mid-day, while successfully surpassing the psychological level of 9,500, driven by high retail participation and subsequently closing at 9,542,” First Capital added.

It said turnover was led by a joint contribution of 56% from the Capital Goods, Transportation and Food, Beverage and Tobacco sectors.

Asia Securities said following the slight decline on Friday, the ASPI returned to positive territory and started the week on a strong note, scaling a new all-time high, mainly led by price gains in CLC, which contributed around 67 points to the index.

It said excluding Commercial Leasing’s (CLC) contribution, the ASPI gained as much as 33 points. Despite recording an 18% gain at the market close, activity in CLC accounted for only 3% of total turnover.

On the contrary, the more liquid S&P SL20 index managed to end the session with a marginal gain after shedding 39 points during early hours due to price declines in heavyweight stocks such as EXPO, DIPD, and LOLC on profit-taking. Healthy buying in EXPO, BIL, and RCL supported activity momentum, while overall market breadth remained positive with 110 stocks ending higher compared to 79 decliners.

Asia said foreigners recorded a net outflow of Rs. 52 million while their participation increased to 1% of turnover (previous day 0.5%). Estimated net foreign buying topped in LB Finance at Rs. 1.2 million and net selling topped in JKH at Rs. 29 million.

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

It said high net worth and institutional investor participation was noted in Royal Ceramics and Cargills. Mixed interest was observed in Expolanka Holdings, Dipped Products and John Keells Holdings, whilst retail interest was noted in R I L Property, Beruwala Resorts and SMB Leasing.

The Capital Goods sector was the top contributor to the market turnover (due to Royal Ceramics), whilst the sector index gained 0.87%. The share price of Royal Ceramics moved up by Rs. 1.80 (3.95%) to close at Rs. 47.40.

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 0.61%. The share price of Browns Investments gained Rs. 0.40 (3.88%) to close at Rs. 10.70.

Expolanka Holdings, R I L Property and Dipped Products were also included amongst the top turnover contributors. The share price of Expolanka Holdings decreased by Rs. 3 (1.51%), closing at Rs. 195.25. The share price of R I L Property recorded a gain of Rs. 1.10 (12.94%) to close at Rs. 9.60. The share price of Dipped Products declined by Rs. 1.10 (1.94%) to close at Rs. 55.50.