CSE gathers more momentum; ASPI crosses 11,300 points mark

The Colombo stock market gathered more momentum yesterday with indices up, albeit lower than Wednesday amidst health turnover.

The ASPI was up 0.2% and S&P SL20 by 0.4% whilst turnover was Rs. 1.9 billion involving 86.4 million shares.

The market also saw a rare net foreign inflow yesterday.

Asia Securities said the market experienced robust momentum, driving the ASPI to surpass the 11,300 mark. Notably, investors showed a preference for AAIC (+4.4%), LIOC (+4.1%), MGT (+4.9%), SUN (+1.4%), ACL (+3.0%) and VONE (+3.1%) during the session. However, BIL (-5.3%), LOFC (-5.0%), and LMF (-1.1%) closed in red. The ASPI closed out the session with a 31-point gain driven by CTC (+10 points), SAMP (+7 points), LIOC (+6 points), and RICH (+4 points). The breadth of the market was strong, with 91 price gainers and 91 decliners.

Market turnover was led by VONE (Rs. 158 million), LIOC (Rs. 127 million), ACL (Rs. 126 million), and SUN (Rs. 109 million).

Foreigners recorded a net inflow of Rs. 26 million. Net foreign buying topped in ACL at Rs. 48 million and selling topped in CCS at Rs. 18.8 million.

First Capital said the bullish trend continued in the stock market for the 9th consecutive session as investor confidence shifted favourably towards banks and blue-chip stocks as the ASPI closed in positive territory at 11,318, marking a gain of 31 points. Index reached an intra-day high of 11,350, supported by ongoing buying activity in banking stocks, notably SAMP and COMB. Investor attention shifted away from trading stocks like LOLC, BIL, and CFVF, which had seen gains in the previous week, towards stocks such as HHL and MGT, which attracted increased buying interest. 

However, towards the end of the day, the momentum of the index slightly slowed down as selling pressure emerged on TILE and LWL, coinciding with XD dates. 

NDB Securities said high net worth and institutional investor participation was noted in Vallibel One, John Keells Holdings and Hatton National Bank. Mixed interest was observed in Hayleys Fabric, Sampath Bank and Royal Ceramics whilst retail interest was noted in Browns Investments, LOLC Finance and SMB Leasing nonvoting. 

The Capital Goods sector was the top contributor to the market turnover (due to Vallibel One and ACL Cables) whilst the sector index lost 0.53%. The share price of Vallibel One increased by Rs. 1.50 to Rs. 50. The share price of ACL Cables moved up by Rs. 2.40 to Rs. 83.40.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Sunshine Holdings) whilst the sector index increased by 0.47%. The share price of Sunshine Holdings recorded a gain of 80 cents to Rs. 59.70.

Lanka IOC and Hayleys Fabric were also included amongst the top turnover contributors. The share price of Lanka IOC gained Rs. 4.50 to Rs. 114.25. The share price of Hayleys Fabric appreciated by Rs. 2 to Rs. 42.50.

Separately, Mercantile Investments and Finance announced its dividend of Rs. 20 per share.