Stock market enjoys positive week after recent negatives

The Colombo stock market gathered more strength yesterday helping a positive finish to the week reversing the trend suffered in the previous two.

The All Share Price Index gained by 1.24% or over 109 points and the S&PSL20 improved by 1.37% or over 45 points. Turnover improved to the highest for the week of Rs. 3 billion with 135 million shares traded.

During the week, the ASPI and the S&P SL20 gained 1.57% and 1.70%, respectively, whilst recording an average daily turnover of Rs. 2.3 billion down from Rs. 4.7 billion in the previous week.

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

It said high net worth and institutional investor participation was noted in Janashakthi Insurance, Royal Ceramic Lanka and Nestle. Mixed interest was observed in Expolanka Holdings, LOLC Holdings and Eden Hotel Lanka whilst retail interest was noted in Browns Investments, Kotagala Plantations and Prime Lands Residencies.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 2.32%. The share price of Expolanka Holdings increased by Rs. 4 (2.33%) to close at Rs. 175.50.

Food, Beverage and Tobacco sector was the second-highest contributor to the market turnover (due to Browns Investments and Kotagala Plantations) whilst the sector index increased by 0.54%. The share price of Browns Investments gained 40 cents (4.40%) to close at Rs. 9.50. The share price of Kotagala Plantations moved down by Rs. 0.10 (1.67%) to close at Rs. 5.90.

LOLC Holdings and Royal Ceramics were also included amongst the top turnover contributors. The share price of LOLC Holdings recorded a gain of Rs. 10.25 (2.01%) to close at Rs. 521. The share price of Royal Ceramics appreciated by Rs. 1.20 (2.89%) to close at Rs. 42.70.

First Capital said the Bourse ended the week in the green territory, following the continuous upward momentum for the third consecutive day while recording the highest turnover for the week.

“Index started on a positive note and remained bullish throughout the session and successfully broke three-week Friday’s negative closing as optimistic investors continued their buying spree and managed to recoup earlier losses. Index firmly closed the week at a two-week high of 8,940,” First Capital added.

It said turnover was led by the Transportation sector, followed by the Food, Beverage and Tobacco sector accounting for a joint contribution of 56%. Foreign investors remained net sellers while recording low participation.

Asia Securities said the market ended the week on an upbeat note with the ASPI reaching a two-week high and posting its biggest single-day gain in the last six sessions, led by price gains in index-heavy counters such as EXPO, CLC and NIFL.

“The ASPI initially started the session higher and moved within the range of 8,850-8,900 during early hours. The index gained more momentum in late-afternoon trade as investors took cues from the gradual recovery seen over the last few sessions in the market and sought selected heavyweight stocks at lower prices,” Asia added.

It also said healthy buying across sectors kept the market breadth positive as 110 stocks advanced against 66 decliners. Turnover improved from yesterday’s levels supported by retail and HNI activity in EXPO.

Foreigners recorded a net outflow of Rs. 46.2 million while their participation increased to 3.2% of turnover (previous day 2.3%). Net foreign buying topped in EXPO at Rs. 51.2 million and net foreign selling topped in Nestle at Rs. 84 million.

Crossings accounted for 5.3% of turnover with one crossing each recorded in Nestle (Rs. 62.5 million); RCL (Rs. 42 million); Janashakthi Insurance (Rs. 25 million); and Sampath Bank (Rs. 23.2 million).

Separately, Bukit Darah announced an interim dividend of Rs. 1 per share.