Trading gathers momentum at Colombo stock market

Wednesday, 30 November 2022 00:27 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday saw a sharp pick up in trading in terms of turnover and volume with indices staying positive.

Turnover rose to Rs. 2.88 billion involving 100.3 million shares, which was a recent high.

The S&P SL20 index gained by 1% and the benchmark ASPI improved by 0.8%. Asia Securities said the indices closed higher for a third consecutive session amid rising turnover as continued buying in EXPO supported positive momentum in the market.

Earlier, the ASPI touched an intra-day high of 8,429 (+119 points) before witnessing a steep decline of 108 points to 8,321. Nevertheless, the index gained lost ground in the second half and managed to close out with a gain of 65 points at 8,375. Among active counters, EXPO (+4.0%), BIL (+6.6%), CFVF (+13.4%), FCT (+8.0%), SUN (+4.7%), LOLC (+2.1%), and CICX (+3.1%) recorded price gains while ACL (-4.4%), LOFC (-1.5%), DIPD (-2.1%), HAYL (-1.5%), and HAYC (-1.4%) settled with price losses.

Turnover recorded a seven-week high led by EXPO (Rs. 1,241 million), LIOC (Rs. 382 million), and BIL (Rs. 287 million). Similarly, trading volume picked up markedly coming in at 100.3 million shares (previous session-77.1 million shares). The breadth of the market remained positive 103 gainers and 73 decliners.

Asia also said foreigners recorded a net inflow of Rs. 1.1 million. Net foreign buying topped in EXPO at Rs. 29 million and selling topped in MELS at Rs. 39.6 million.

First Capital said the bourse eked a gain for the third day as speculations on interest rates easing continued as investors expected yields from the bond auction to follow a similar trend as of the last T-Bill auction.

Accordingly, the market witnessed renewed interest in treasury counters such as FCT, CFVF and CALT. Although the index spiked high during the initial hours of trading, it tumbled with some volatility during mid-day with profit booking witnessed on LIOC. However, with a major contribution stemming from EXPO and BIL, ASPI gathered momentum yet again and closed for the day at 8,375 gaining 65 points.

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp and Ceylon Cold Stores. Mixed interest was observed in Expolanka Holdings, Lanka IOC and ACL Cables, whilst retail interest was noted in Browns Investments, First Capital Holdings and First Capital Treasuries.

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index gained 3.97%. The share price of Expolanka Holdings increased by Rs. 7.25 (3.98%) to close at Rs. 189.50.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments and Melstacorp), whilst the sector index increased by 2%. The share price of Browns Investments moved up by 40 cents (6.56%) to close at Rs. 6.50. The share price of Melstacorp appreciated by Rs. 2 (4.38%) to close at Rs. 47.70.

Lanka IOC and First Capital Holdings were also included amongst the top turnover contributors. The share price of Lanka IOC lost Rs. 1.75 (0.92%) to close at Rs. 187.75. The share price of First Capital Holdings recorded a gain of Rs. 2.70 (13.43%) to close at Rs. 22.80.