Stock market ends another positive week

The Colombo stock market ended another positive week gaining by 2%, though yesterday, it closed less convincingly.

The All Share Price Index yesterday gained by 8 points whilst the S&P SL 20 declined by 6 points. Turnover was Rs. 3 billion involving 177.7 million shares.

However, during the week, the ASPI and the S&P SL20 gained 2.51% and 2.08%, respectively, whilst recording an average daily turnover of Rs. 3.8 billion.

NDB Securities said the ASPI yesterday edged up as a result of price gains in counters such as Hayleys, Expolanka Holdings and Browns Investments.

It said high net worth and institutional investor participation was noted in Royal Ceramics and Hayleys. Mixed interest was observed in Tokyo Cement Company voting and nonvoting, and Expolanka Holdings whilst retail interest was noted in Browns Investments, Industrial Asphalts and Amana Bank. Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

The Capital Goods sector was the top contributor to the market turnover (due to Royal Ceramics) whilst the sector index gained 0.48%. The share price of Royal Ceramics gained 80 cents (1.71%) to close at Rs. 47.60.

Materials sector was the second-highest contributor to the market turnover (due to Tokyo Cement Company voting and nonvoting) whilst the sector index increased by 1.37%. The share price of Tokyo Cement Company nonvoting moved up by Rs. 5 (11.63%) to close at Rs. 48. The share price of Tokyo Cement Company recorded a gain of Rs. 4.50 (8.65%), closing at Rs. 56.50.

Browns Investments and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Browns Investments increased by 10 cents (0.94%) to close at Rs. 10.70. The share price of Expolanka Holdings appreciated by 75 cents (0.39%) closing at Rs. 192.75.

First Capital said the bourse managed to end the week in the green territory, after swaying in and out from red to green throughout the session while recording a two-week low turnover.

“Index moved on sizable volatility during the session, reaching an intraday low of 9,629 during the first few minutes of trading.  Eventually, it recovered from the downfall and reached its intraday high of 9,705 towards the end, and thereafter displayed a gradual downtrend before closing at 9,679,” First Capital added.

It said turnover was led by the Capital Goods sector, followed by the Materials sector, accounting for a joint contribution of 47%.

Asia Securities said the indices bounced back steadily from an initial slide caused by price declines in index heavy CLC, CARS and SAMP during early hours of trading while turnover declined to a two-week low. 

“Notably, TKYO was under investors’ radar as the stock witnessed significant buying interest from investors with optimism underpinned by the Government’s recent decision to remove price controls imposed on cement,” Asia added.

“The ASPI declined to an intra-day low of 9,633 (-38 points) minutes after market open today, however gaining momentum thereupon the index ended the session on a positive note on the back of price gains in BIL, TKYO, and HAYL. The more liquid S&P SL 20 index also staged a strong recovery during the session and pared most of its early losses to close marginally lower. Market breadth remained positive as 107 stocks ended higher while 86 stocks recorded price declines during the session,” Asia said.

Foreigners recorded a net outflow of Rs. 27.3 million while their participation declined to 1% of turnover (previous day 1.6%). Estimated net foreign buying topped in AHPL at Rs. 4.7 million and net foreign selling topped in TKYO at Rs. 9.8 million.