Colombo stock market enjoys sharp gains, high turnover

The Colombo stock market yesterday ended the week with sharp gains with turnover on Friday crossing Rs. 4 billion mark.

During the week the benchmark ASPI gained by 3.8% and the active S&P SL20 by 5.4%. In contrast last week, the ASPI and the S&P SL20 lost 2.3% and 3.4% respectively.

Average daily turnover this week was Rs. 2.71 billion, up from Rs. 1.95 billion in the previous week.

Asia Securities said the indices closed out the week on a high note with the ASPI crossing the 12,200 levels, up by 125 points. BIL (+4.8%), HHLN (+2.6%), LIOC (+3.0%), PLC (+3.5%) and COMB (+4.1%) saw steady buying interest from the investors during the session. 

COMB (+27 points) came in as the major driver of the ASPI for the day, followed by HNB (+9 points), and SPEN (+9 points).The breadth of the market was positive with 134 stocks recorded price increases while 67 settled with losses.

Turnover on Friday was led by HAYL (Rs. 508 million), JKH (Rs. 389 million) and BIL (Rs. 356 million). Crossings accounted for 17.8% of turnover led by HAYL (Rs. 317.2 million), JKH (Rs. 218.5 million) and PLC (Rs. 109.8 million).

Foreigners recorded a net outflow of Rs. 288.3 million. Net foreign buying topped in COMB.N at Rs. 54.5 million selling topped in JKH at Rs. 285.1 million.

First Capital said the market maintained its upward trajectory for the 4th consecutive day, with active participation from retail and high-net worth investors driving the ASPI to close at 12,201, marking a gain of 125 points and signalling a bullish market trend. Notably, Banking sector counters such as COMB, HNB along with mid-cap companies such as SPEN, BIL and CFIN contributed the ASPI positively while the negative contribution from some index-heavy weights was also observed. However, the daily turnover marked a steep 71.4% incline from the month’s daily average of Rs. 2.4 billion with volumes majorly coming through LOLC cluster. 

The Capital Goods sector dominated the turnover with 36%, while Food, Beverage and Tobacco and Diversified Financials sectors jointly contributed 33%. Investor sentiment toward Banking and Hotel sector counters remained optimistic, fuelled by expectations of forthcoming earnings releases. 

NDB Securities said high net worth and institutional investor participation was noted in Hayleys, John Keells Holdings and People’s Leasing & Finance. Mixed interest was observed in Browns Investments, Hemas Holdings and Lanka IOC whilst retail interest was noted in LOLC Finance, SMB Leasing and Waskaduwa Beach Resort rights. 

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys, John Keells Holdings and Hemas Holdings) whilst the sector index edged up by 0.11%. The share price of Hayleys decreased by Rs. 1.70 to Rs. 83.30. The share price of John Keells Holdings lost Rs. 1.50 to Rs. 208.25. The share price of Hemas Holdings recorded a gain of Rs. 2.20 to Rs. 86.50.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 1.21%. The share price of Browns Investments moved up by 30 cents to Rs. 6.50.

Lanka IOC was also included amongst the top turnover contributors. The share price of Lanka IOC appreciated by Rs. 3.75 to Rs. 130.75.