Colombo stock market ends week with 4% gain; Rs. 3 b net foreign inflow

The Colombo stock market ended the second consecutive week on the up with a 4% gain with nearly Rs. 5 billion average daily turnover.

The benchmark ASPI gained 387.76 points (4.16%) and the active S&P SL20 rose 121.68 points (4.04%). The market also enjoyed net foreign inflow of Rs. 2.9 billion ($ 8.1 million) on continued buying in EXPO (Rs. 3.6 billion or $ 10 million).

Asia Securities said yesterday the indices extended the gaining streak for a third consecutive session mainly led by JKH (+4.4%), EXPO (+4.2%), and RCL (+8.5%) while price increases in LIOC (+3.3%), MELS (+4.1%), TKYO.X (+13.7%), TKYO.N (+17.1%), CCS (+6.3%), and VONE (+4.9%) provided further support to the indices. 

Conversely, LOFC (-4.0%), RICH (-2.8%), LDEV (-0.9%), LOLC (-0.4%), and CIC.N (-0.2%) closed in red. Turnover stood at Rs. 4.1 billion (previous session Rs. 5 billion) on the back of activity in EXPO (Rs. 486 million), LIOC (Rs. 475 million), JKH (Rs. 398 million), and RCL (Rs. 309 million). 

After a string of net buying sessions, foreigners ended on the selling side, generating a net outflow of Rs. 310 million led by JKH (Rs. 266 million). 

Asia said following a 106-point gap-up at 9,704, the ASPI moderated in the range of 9,660-9,700 in the first hour of the session. The index picked up sharply at the back end of the session, hitting an intra-day high of 9,750 (+151 points), however eventually settled at 9,704 (+106 points). 

JKH ended as the biggest index mover, contributing 21 points to the ASPI, followed by EXPO (+18 points), RCL (+14 points), and MELS (+11 points). The breadth of the market ended positive with 116 stocks recording price gains during the session and 95 settling with losses.

First Capital said the bourse thrived in green for the third consecutive session led by the strong upswing in blue chip counters and mid-cap counters. Index displayed a steady run as the market opened and continued to climb higher with significant interest on diversified counters such as JKH and SUN while buying interest was renewed on retail favourite LIOC and EXPO to close solidly on the green at 9,704 with a sharp gain of 105 points. 

NDB Securities said high net worth and institutional investor participation was noted in Royal Ceramics, John Keells Holdings and Richard Pieris & Company. Mixed interest was observed in Expolanka Holdings, Lanka IOC and Melstacorp whilst retail interest was noted in Industrial Asphalts, SMB Leasing and Kotagala Plantations. 

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Royal Ceramics) whilst the sector index gained 3.21%. The share price of John Keells Holdings moved up by Rs. 5.50 (4.40%) to close at Rs. 130.50. The share price of Royal Ceramics recorded a gain of Rs. 3 (8.45%) to close at Rs. 38.50.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp) whilst the sector index increased by 0.52%. The share price of Melstacorp appreciated by Rs. 2.30 (4.07%) to close at Rs. 58.80.

Expolanka Holdings and Lanka IOC were also included among the top turnover contributors. The share price of Expolanka Holdings increased by Rs. 9.50 (4.17%) to close at Rs. 237.50. The share price of Lanka IOC gained Rs. 7.50 (3.30%) to close at Rs. 234.75.