Colombo stock market notches a bullish week

Colombo stock market ended a bullish week with sharp gains by the indices and improved turnover thanks to resilient investor sentiment.

The indices closed in green for a second consecutive week with the ASPI recording a 351-point gain (3.1%) and the S&P SL20 index closing 164 points higher (4.9%) compared to the previous week’s increase of 1.6% (ASPI) and 2.8%) S&P SL20. Average daily turnover was Rs. 2.88 billion.

Notably, banking stocks saw continued buying while broad-based investor activity was seen in the market throughout the week. Foreigners revert to net buying yesterday.

Asia Securities said the ASPI touched a 12-month high on Friday as the market continued its upward momentum for an eighth consecutive session driven by banking counters HNBN (+2.4%), COMBN (+5.5%), PABC (+3.2%), and DFCC (+1.6%). Furthermore, LIOC (+2.5%), AHPL (+4.6%), CFIN (+3.4%), and SIRA (+3.6%) saw steady buying from investors.

COMBN (+33 points) and HNBN (+15 points) came in as the major index drivers of the ASPI. The breadth of the market was positive with 106 price gainers and 75 decliners. Turnover came in at Rs. 2.9 billion (previous session Rs. 3.2 billion) led by HNBN (Rs. 655 million), COMBN (Rs. 325 million), SAMP (Rs. 192 million), and PABC (Rs. 109 million). Foreigners generated a net inflow of Rs. 100 million boosted by COMBN (Rs. 117 million). Net foreign selling topped in PABC.N at Rs. 44.2 million.

NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank, Hatton National Bank and Lankem Developments. Mixed interest was observed in Commercial Bank, Pan Asia Banking Corporation and Lanka IOC whilst retail interest was noted in Browns Investments, Amana Bank and LOLC Finance.

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Commercial Bank, Sampath Bank and Pan Asia Banking Corporation) whilst the sector index gained 2.23%. The share price of Hatton National Bank increased by Rs. 4.75 to Rs. 200. The share price of Commercial Bank gained Rs. 5.45 to Rs. 105.25. The share price of Sampath Bank moved down by

70 cents to Rs. 78. The share price of Pan Asia Banking Corporation recorded a gain of 70 cents to Rs. 22.90.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover whilst the sector index edged up by 0.11%.

Sierra Cables was also included amongst the top turnover contributors. The share price of Sierra Cables appreciated by 40 cents to Rs. 11.40.