Colombo stock market begins week on the up

The Colombo stock market began a fresh week on a positive note with investors both local and foreign appearing bullish.

The active S&P SL20 gained by 0.94% and the benchmark ASPI by 0.64%. Turnover was Rs. 1.3 billion involving 114 million shares. Foreigners turned net buyers to the tune of Rs. 44 million.

The market closed last week with ASPI losing 2.3% and the S&P SL20 declining by 3.4%.

Asia Securities said the market commenced the week on a positive note mainly driven by retail activity in LOFC (+9.4%), BIL (+1.8%), LOLC (+2.1%), and LMF (+6.0%). The ASPI moved upwards throughout the session to close at 11,828 (+75 points).

COMBN (+9 points), LOFC (+7 points), and LOLC (+6 points) came in as the major drivers of the ASPI while SPEN (-7 points) ended as the biggest laggard on the index. The breadth of the market was positive with 124 price gainers and 60 decliners.

Turnover was led by LOFC (Rs. 231 million), BIL (Rs. 101 million), and LMF (Rs. 96 million).

Foreigners recorded a net inflow of Rs. 44 million. Net foreign buying topped in COMB.N at Rs. 36.5 million and selling topped in SHL at Rs. 6.9 million.

First Capital said the Bourse commenced the day on a bullish trend, propelled by enthusiastic retail investor participation, leading to the market reaching an intraday peak of 11,853 before settling at 11,828, marking a gain of 75 points.

The prevailing uncertainties on EDR and IMF discussions, limited the activities on the bourse, yet managed to push up the ASPI to green during the day. Notably, index heavyweights such as LOLC, LOFC, and MELS, alongside Banking sector counters like COMB, and mid-cap entities such as LION, played a pivotal role and contributed to the ASPI positively.

However, the daily turnover marked a steep 43.6% decline from the month’s daily average of Rs. 2.3 billion, with trading activity moderating around 17,435 transactions. Diversified Financials sector contributed to turnover at 34%, while the Capital Goods and Food, Beverage and Tobacco sectors jointly contributed 36%.

NDB Securities said high net worth and institutional investor participation was noted in Hemas Holdings PLC. Mixed interest was observed in Lanka Milk Foods, Capital Alliance and Commercial Bank whilst retail interest was noted in LOLC Finance, Browns Investments and Lanka Credit and Business Finance.

The Diversified Financials sector was the top contributor to the market turnover (due to LOLC Finance and Capital Alliance) whilst the sector index gained 1.69%. The share price of LOLC Finance increased by 60 cents to Rs. 7. The share price of Capital Alliance recorded a loss of Rs. 1.10 to Rs. 63.70.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments and Lanka Milk Foods) whilst the sector index increased by 1.25%. The share price of Browns Investments gained 10 cents to Rs. 5.70.

The share price of Lanka Milk Foods moved up by Rs. 1.80 to Rs. 31.60.

Commercial Bank was also included amongst the top turnover contributors. The share price of Commercial Bank appreciated by Rs. 1.50 to Rs. 106.00.