Colombo stock market soars to 2 year high as investors sustain bull run

The Colombo stock market yesterday rose to a two year high as investors sustained the recent bull run.

On a shortened trading day due to upcoming holidays, the benchmark ASPI gained by 0.6% or 70.6 points to close at 12,033 points. It was the first time ASPI crossed the 12,000-points level with the previous occasion being 21 February 2022. The active S&P SL20 gained by 0.7%. The sustained bull run ensured the ASPI closed the week up 2% and the S&P SL20 by 2.6%. Average daily turnover was Rs. 2.91 billion.

Asia Securities said on Wednesday, sharp price increases were recorded in SAMP (+0.6%), CIND (+2.6%), VONE (+2.4%), NTB (+2.6%), LOLC (+1.7%), COMB (+1.4%) and MGT (+1.0%). Moreover, TAP (+6.3%) continued the recent upward trend during the session. 

COMB (+9 points), HNBN (+8 points), and HNBX (+5 points) were the key index drivers during the session while HAYL (-10 points) ended as the biggest laggard on the ASPI. The breadth of the market was strong, with price gainers outnumbering decliners by a margin of 106 to 56.

Market activity continued at improved levels with SAMP dominated turnover with Rs. 1.4 billion, primarily driven by off-board transactions followed by LOLC (Rs. 288 million), and COMB (Rs. 83 million).

Foreigners recorded a net outflow of Rs. 15.3 million. Net foreign buying topped in COMB.N at Rs. 

24.1 million, and selling topped in LALU.N at Rs. 16.1 million.

First Capital said the Bourse extended its bullish trend, closing the short trading day with a significant gain of 71 points, reaching a new milestone by surpassing 12,000 mark for the first time in 2-years, and settling at 12,033 ahead of the New Year holidays. 

“Investor sentiment remained optimistic, particularly towards the Banking sector due to attractive valuations, with COMB, HNB, and SAMP notably driving the ASPI hike for the day,” First Capital said. Additionally, there was a slight uptick in investor interest observed in selected construction sector counters. 

Improved retail participation coupled with active buying of HNWIs and institutional investors further fuelled turnover particularly through off-board transactions in SAMP, LOLC, and MGT, which jointly accounted for 46% of the market turnover. The Banking sector accounted for 60% of the turnover.

NDB Securities said crossings were witnessed in Sampath Bank, LOLC Holdings and Hayleys Fabric, accounting for 46.0% of the turnover. Mixed interest was observed in Commercial Bank, Hatton National Bank and Pan Asia Banking Corporation whilst retail interest was noted in Browns Investments, Citrus Leisure Rights and Lanka Credit and Business Finance. 

The Banking sector was the top contributor to the market turnover (due to Sampath Bank, Commercial Bank and Hatton National Bank) whilst the sector index gained 1.24%. The share price of Sampath Bank increased by 50 cents to Rs. 81. The share price of Commercial Bank moved up by Rs.

1.50 to Rs. 111.50. The share price of Hatton National Bank appreciated by Rs. 2.50 to Rs. 203.50.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Holdings) whilst the sector index increased by 1.06%. The share price of LOLC Holdings gained Rs. 7 to Rs. 412.

Hayleys Fabric was also included amongst the top turnover contributors. The share price of Hayleys Fabric recorded a gain of 40 cents to Rs. 40.90.