Stock market posts strong gain despite foreign selling

Friday, 29 May 2020 00:26 - - {{hitsCtrl.values.hits}}

The Colombo stock market gained further momentum yesterday with strong gain despite foreigners turning net sellers.

The All Share Price Index rose by 1.8% or 87 points and the S&PSL20 Index by 2% or 43 points. Turnover was a healthy Rs. 1.2 billion. Yesterday’s gain by indices were stronger compared with 0.4% and 0.8% on Wednesday.

This was despite foreigners ending up as net sellers to the tune of Rs. 182 million as against a net inflow of Rs. 121 million on Wednesday. Total foreign sales accounted for 46.2% of the turnover.

First Capital said the Bourse ended in the positive territory for the second consecutive session while John Keells Holdings (JKH) and Expolanka Holdings (EXPO) contributed 43% of turnover.

“Parcel trades made in Sanasa Development Bank, HNB and EXPO substantially boosted turnover while the Index was uplifted predominantly due to the price gains in JKH and Ceylon Tobacco,” First Capital said.

It said the ASPI witnessed a continuous upward trend since the beginning of the session leading to a closure at its intraday high of 4,887, gaining 87 points.

NDB Securities said high net worth and institutional investor participation was noted in JKH, HNB and Sanasa Development Bank.

Mixed interest was observed in Expolanka Holdings, Commercial Bank and Dialog Axiata whilst retail interest was noted in Tokyo Cement Company and Sierra Cables.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Sanasa Development Bank and Commercial Bank) whilst the sector index gained 1.52%. The share price of Hatton National Bank edged down by Rs. 0.10 (0.10%) to close at Rs. 103.90. The share price of Sanasa Development Bank recorded a gain of Rs. 2.10 (4.38%) to close at Rs. 50.10. The share price of Commercial Bank appreciated by Rs. 0.80 (1.25%) to close at Rs. 64.80.

Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 3.27%. The share price of John Keells Holdings increased by Rs. 5.70 (5.18%) to close at Rs. 115.80. Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 0.10 (4.00%) to close at Rs. 2.60.