Stock market returns to positive territory

The Colombo stock market produced a welcome return to positive territory yesterday though on thin volume.

The active S&P SL20 gained by 1.5% and the benchmark ASPI by 1%. Turnover was Rs. 760.5 million involving 31 million shares.

Asia Securities said following five sessions of losses, the indices rebounded into positive territory on Tuesday (21) led by price gains in EXPO (+4.2%), DIAL (+5.2%), SCAP (+3.4%), DIPD (+3.8%), RCL (+1.9%), BIL (+1.0%), AAIC (+1.9%) and LOFC (+1.5%).

However, retail and HNI buying remained moderate with turnover coming in at Rs. 761 million (previous session Rs. 823 million) supported by activity in EXPO (Rs. 209 million), RCL (Rs. 119 million), and LIOC (Rs. 114 million). The ASPI commenced the session on an upbeat note, touching an intra-day high of 7,572 (+147 points or 2.0%) and witnessed stabilisation in the second half of the session. 

Eventually, the ASPI settled at 7,502 (+77 points or +1.1%) and the S&P SL20 index closed at 2,401 (+36 points or +1.5%). The breadth of the market ended strong with price gainers outnumbering decliners by a wide margin of 119 to 37.

Asia also said foreigners recorded a net outflow of Rs. 9.5 million while their participation declined to 3.3% of turnover (previous day 5.4%). Net foreign buying topped in ASCO at Rs. 1.4 million and net selling topped in JKH at Rs. 9.1 million.

First Capital said the Bourse retaliated to the green territory after five consecutive losses as investors pinned some hope on market activities following the cabinet of ministers approving the draft 21st Amendment to the Constitution. Index opened on an upsurge as investors bargain hunted on popular stocks but gradually lost momentum as participation levels failed to sustain the upbeat. 

Eventually, the index closed positively at 7,502 gaining 78 points backed by significant contributions from blue chip companies. However, turnover remained at a poor level recording at R. 760.5 million led by a joint contribution of 54% from the Transportation sector and Capital Goods sector.

NDB Securities said high net worth and institutional investor participation remained subdued for the day. Mixed interest was observed in Expolanka Holdings, Royal Ceramics and Lanka IOC whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting and Softlogic Capital.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 4.19%. The share price of Expolanka Holdings increased by Rs. 6.75 (4.18%) to close at Rs. 168.25.

The Capital Goods sector was the second-highest contributor to the market turnover (due to Royal Ceramics) whilst the sector index increased by 0.74%. The share price of Royal Ceramics gained 50 cents (1.95%) to close at Rs. 26.20.

Lanka IOC, Browns Investments and LOLC Finance were also included among the top turnover contributors. The share price of Lanka IOC moved up by Rs. 1.90 (2.87%) to close at Rs. 68.20. The share price of Browns Investments recorded a gain of 10 cents (1.27%) to close at Rs. 8. The share price of LOLC Finance appreciated by 10 cents (1.47%) to close at Rs. 6.90.