Stock market remains bullish ignoring political and economic concerns

• Expolanka gathers momentum; up over 7% to Rs. 375.50 with market cap crossing Rs. 737 b

The Colombo stock market sustained its bullishness disregarding political and economic concerns with both indices up over 1% and above average turnover.

The All Share Price Index gained by 1.15% or over 134 points and the S&P SL20 improved by 1.3% or over 55 points. Turnover improved to Rs. 8.5 billion involving 533.7 million shares. Expolanka gathered momentum with share price up over 7% to Rs. 375.50 with market capitalisation crossing Rs. 737 billion.

The ASPI is up 74% year to date and S&P SL20 crossed the 60% return point.

Asia Securities said the market witnessed another buoyant session as both indices extended their rally for the fourth consecutive session and closed out with a gain of more than one percent, boosted by a surge in EXPO which came on the back of strong buying extended by retail and HNI investors. 

The ASPI has gained as much as 776 points over the last four sessions while the more liquid S&P SL20 index has gained 289 points. Commencing trading at Rs. 350.25, EXPO sustained its upward trajectory and reached an intra-day high of Rs. 382 (+9.1%) in mid-afternoon trade before settling at Rs. 377 (+7.6%) at market close. The stock topped the turnover list (Rs. 1,857 million) and also contributed the most to the ASPI with 117 points. 

“The ASPI commenced the session with an 80-point gap and moved within the range of 11,700-11,750 in the first of the session. Subsequently, the index spiked 117 points in mid-afternoon trade and crossed the 11,800 level to scale a fresh all-time high at 11,844 (+181 points) largely due to EXPO boost. 

“However, the index consolidated during closing hours and ended the session at a record closing high of 11,797 (+135 points). The more liquid S&P SL20 index trended upwards throughout the session and surpassed the 4,200 level to close at a record high of 4,249 (+55 points). Overall, 103 stocks ended in green while 109 recorded settled with price losses,” Asia said. 

It said foreigners recorded a net inflow of Rs. 5.8 million while their participation declined to 1.4% of turnover (previous day 3.4%). Net foreign buying topped in WIND at Rs. 18.8 million and net selling topped in HHL at Rs. 18.7 million. 

First Capital said the bourse ended in the green territory for the fourth straight session with the persistent bullish sentiment in the market and sustained healthy turnover.

“As the market opened, index moved on a toned-down pace with subdued trading. However, after midday index leaped up with vast volatility hitting an intra-day high of 11,848 and continued to remain high although it slightly dropped during the final half hour before closing for the day at 11,797 gaining 135 points,” First Capital said. It added that turnover was led by a joint contribution of 45% from the Capital Goods sector and Transportation sector. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Expolanka Holdings, Royal Ceramics and Lanka IOC. It said high net worth and institutional investor participation was noted in Chevron Lubricants, Expolanka Holdings and Resus Energy. Mixed interest was observed in Browns Investments, Hayleys and ACL Cables and whilst retail interest was noted in SMB Leasing, SMB Leasing non-voting and Industrial Asphalts. 

Capital Goods sector was the top contributor to the market turnover (due to ACL Cables and Hayleys) whilst the sector index gained 1.68%. The share price of ACL Cables recorded a gain of Rs. 9.30 (9.67%) to close at Rs. 105.50. The share price of Hayleys appreciated by Rs. 2.75 (2.39%) to close at Rs. 118. Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index increased by 7.63%. 

The share price of Expolanka Holdings increased by Rs. 26.75 (7.64%) to close at Rs. 377. Browns Investments and Resus Energy were also included amongst the top turnover contributors. The share price of Browns Investments lost 30 cents (2.08%) closing at Rs. 14.10. The share price of Resus Energy moved up by Rs. 5.80 (16.48%) closing at Rs. 41.