Stock market rises sharply to over 3-week high

The Colombo stock market yesterday produced one of the sharpest gains in recent weeks as buying returned, though turnover value failed to match bullish investor sentiment.

The All Share Price Index gained by 1.7% or 122 points whilst the S&PSL20 shot up by 2.8% or 81 points. Turnover was Rs. 2.7 billion involving 148 million shares. In comparison to Thursday’s figure, yesterday’s turnover was up by 114% according to Acuity Stockbrokers. 

First Capital said the bourse premiered the week shooting the index remarkably high to reach a three and half-week top. 

“ASPI displayed a stepped upward trend and surged in the first hour of trading followed by a sideways movement during mid-day and ended with a gradual uptrend to close at 7,350, gaining 122 points,” First Capital said. It noted turnover was powered by the active retail participation. The Food, Beverage and Tobacco sector dominated the turnover closely followed by the Capital Goods sector to generate a joint contribution of 50%, it added. 

SC Securities said turnover was dominated by Browns Investments (Rs. 593 million), Expolanka Holdings (Rs. 248 million), Royal Ceramics (Rs. 221 million), LOLC Holdings (Rs. 188.5 million) and Hayleys Fabrics (Rs. 174.6 million).

Asia Securities said the indices extended sharp gains throughout the session as the ASPI remained in green territory for the fourth straight day. Retail activity in BIL boosted market activity as the stock accounted for 22% of turnover. 

It also said foreigners recorded a net outflow of Rs. 29.6 million. Estimated net foreign buying topped in Hayleys at Rs. 25.2 million and net foreign selling topped in Ceylon Cold Stores at Rs. 37.6 million. 

NDB Securities said indices closed in green as a result of price gains in counters such as LOLC Holdings, Expolanka Holdings and John Keells Holdings.

It said high net worth and institutional investor participation remained subdued for the day, whilst mixed interest was observed in Royal Ceramics, Hayleys Fabric and Dipped Products. Mixed interest was observed in Royal Ceramics, Hayleys Fabric and Dipped Products, whilst retail interest was noted in Browns Investments, Expolanka Holdings and SMB Leasing non-voting. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments) whilst the sector index gained 0.42%. The share price of Browns Investments increased by Rs. 0.10 (1.47%) to close at Rs. 6.90.

The Capital Goods sector was the second highest contributor to the market turnover (due to Royal Ceramics) whilst the sector index increased by 2.39%. The share price of Royal Ceramics moved up by Rs. 1.10 (2.97%) to close at Rs. 38.10.

Expolanka Holdings, LOLC Holdings and Hayleys Fabric were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 2.50 (5.62%) to close at Rs. 47. The share price of LOLC Holdings recorded a gain of Rs. 14.50 (4.45%) to close at Rs. 340.25. The share price of Hayleys Fabric appreciated by Rs. 0.30 (1.60%) to close at Rs. 19.10.

Separately, Ceylon Hospitals and Ceylon Tobacco Company announced their interim dividends of Rs. 3.20 and Rs. 19 per share respectively, whilst Piramal Glass announced a first and final dividend of Rs. 0.58 per share. Singer – Sri Lanka announced a final dividend of Rs. 0.25 per share.

Capital Trust said corporate results continued to trickle into the market, recording highly impressive bottom line growth. “With renewed investor optimism evident today, we expect market conditions to remain buoyant tomorrow as well,” it added.