Stock market delivers strong finish for bullish week

The Colombo stock market yesterday delivered a strong finish for a bullish week, with both indices up by over 1% and a high turnover of Rs. 9 billion. 

The All Share Price Index gained by 1.56%, or 172 points, and the S&PSL20 gained by 1.47% or 55 points. Turnover was Rs. 9.14 billion, marginally down from Rs. 10 billion on Thursday.

On a weekly basis, Asia Securities said the ASPI ended higher recovering from its previous week’s losses (+538.96 points or +5.06%) while the S&P SL20 gained 148.03 points (+4.03%) during the week. Turnover averaged Rs. 7.89 billion declining from Rs. 9.2 billion averaged last week.

Asia said the market yesterday ended the final trading session of the week on an upbeat note with both indices reaching fresh peaks, boosted by strong retail and HNI buying and a broad-based pick up in stock prices 

across sectors. 

Specifically, manufacturing companies were under the radar of investors amid renewed momentum, while some of the plantation sector stocks witnessed mild profit-booking on recent price increases. BIL and EXPO drove activity collectively generating Rs. 2.9 billion of turnover. 

“The indices trended upwards throughout the session today with the ASPI touching an intra-day high of 11,224 (+198 points) before settling at 11,198 (+172 points) while the more liquid S&P SL 20 closed at 3,823 (+55 points) recording its biggest single-day gain in seven weeks on price gains in EXPO, LOLC, RCL, and HAYL. The breadth of the market continued positive with 106 stocks closing higher and 93 settling with price losses,” Asia said. 

Foreigners recorded a net outflow of Rs. 278 million while their participation declined to 2.8% of turnover (previous day 5.6%). Net foreign buying topped in JKH at Rs. 23 million and net selling topped in ASCO at Rs. 263 million. 

“The index surged by more than 100 points within the first five minutes of the session and traded positively throughout the day. Besides, ASPI increased by 539 points during the week and managed to close at 11,198, gaining 172 points.”

Turnover was led by a joint contribution of 48% from the Food, Beverage and Tobacco sector and the Capital Goods sector.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Expolanka Holdings, Lanka Orix Finance and LOLC Holdings.

It said high net worth and institutional investor participation was noted in Lanka Realty Investments and Sampath Bank. Mixed interest was observed in Expolanka Holdings, Royal Ceramics and LOLC Holdings, whilst retail interest was noted in Browns Investments, Lanka Orix Finance and Swisstek.

The Food, Beverage & Tobacco sector was the top contributor to the market turnover (due to Browns Investments), whilst the sector index gained 0.40%. The share price of Browns Investments increased by Rs. 0.50 (3.85%) to close at Rs. 13.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to Royal Ceramics), whilst the sector index increased by 2.54%. The share price of Royal Ceramics appreciated by Rs. 4.30 (7.41%) to close at Rs. 62.30.

Expolanka Holdings, Lanka Realty Investments and Swisstek were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 12 (5.10%) to close at Rs. 247.25. The share price of Lanka Realty Investments moved up by Rs. 1.10 (4.33%) to close at Rs. 26.50. The share price of Swisstek recorded a gain of Rs. 6.30 (18%) to close at Rs. 41.30.