Stock market opens fresh week positively

The Colombo stock market opened a fresh week on a positive note with both indices up on robust turnover. 

The All Share Price Index gained by over 118 points or 0.9% and the S&PSL20 shot up by 1.4% or over 63 points. Turnover was Rs. 7.1 billion involving 256.7 million shares. 

Asia Securities said the market commenced the week on a positive note with the ASPI extending gains for the third consecutive session while the more liquid S&P SL20 index also continued its upward trajectory (+1.4%) as a result of price gains in index-heavy counters EXPO, VONE, LFIN and HAYL. 

It said turnover was driven by activity in VONE (Rs. 583 million), EXPO (Rs. 558 million), SCAP (Rs. 455 million) and BIL (Rs. 318 million). 

“Overall, strong retail and HNI buying momentum was witnessed across sectors. In particular, hotel sector stocks saw higher activity during the session and ended with sharp gains. The ASPI opened trading surpassing the 13,500 mark with a gap up of 242 points and moved towards the 13,600 mark in the first half of the session. Subsequently, the index witnessed stabilisation and consolidated below the 13,500 level at market close,” Asia said. The breadth of the market remained positive with 126 gainers and 99 decliners, it added. 

Asia also said foreigners recorded a net inflow of Rs. 14.6 million while their participation declined to 2.7% of turnover (previous day 3.5%). Net foreign buying topped in TJL at Rs. 82.5 million and selling topped in AAIC at Rs. 33.7 million.

First Capital said the Bourse closed in the green zone for the third straight session driven by investor expectations on solid earnings in selected counters with a slightly improved turnover. 

“The Index opened on a significant upswing and remained high into the first hour of the session. Subsequently, the index declined slightly with minimum fluctuations yet managed to hold onto the green territory before closing for the day at 13,457,” First Capital added. 

It said EXPO and VONE were the major contributors to the ASPI and turnover was led by a joint contribution of 40% from the Capital Goods sector and Diversified Financials sector. 

NDB Securities said high net worth and institutional investor participation was noted in Teejay Lanka, Lanka Orix Finance and Chevron Lubricants. Mixed interest was observed in Vallibel One, Expolanka Holdings and Browns Investments, whilst retail interest was noted in Softlogic Capital, Agstar and SMB Leasing nonvoting. 

The Capital Goods sector was the top contributor to the market turnover (due to Vallibel One), whilst the sector index gained 1.10%. The share price of Vallibel One increased by Rs. 9.60 (10.93%) to close at Rs. 97.40. Diversified Financials sector was the second-highest contributor to the market turnover (due to Softlogic Capital) whilst the sector index increased by 0.95%. The share price of Softlogic Capital moved up by Rs. 2.20 (18.49%) to close at Rs. 14.10.

Expolanka Holdings, Browns Investments and Chevron Lubricants were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 9.75 (2.53%) to close at Rs. 394.50. The share price of Browns Investments recorded a loss of 10 cents (0.59%) to close at Rs. 16.90. The share price of Chevron Lubricants appreciated by Rs. 8.75 (7.48%) to close at Rs. 125.75.

Separately LB Finance announced an interim dividend of Rs. 3 per share.