Colombo stock market soars to two year high

The Colombo stock market gathered further momentum yesterday bolstering the main index to two year high.

The benchmark ASPI gained by 1.4% or 170 points to close at 12,075 points, highest since February 2022. The active S&P SL20 gained by 2.8% or nearly 100 points. Turnover was Rs. 3 billion involving 142 million shares. 

Asia Securities said Thursday witnessed an early downturn in the market, which was later reversed and closing on a high note. The ASPI surged by 170 points by the day’s close. The banking sector experienced an upward momentum primarily due to the market expectation of reversal of provisions with COMB (+3.8%), PABC (+7.1%), SAMP (+3.6%), and DFCC (+2.9%) leading the charge. Moreover, SINS (+9.7%), LOLC (+4.1%), JKH (+2.3%) and RCL (+2.9%) saw higher investor activity during the session. 

The ASPI’s upward movement was driven by COMB (+24 points), HNB (+23 points) and SAMP (+20 points).

Turnover was led by COMB (Rs. 283 million), BIL (Rs. 209 million), and LOFC (Rs. 181 million).

Foreigners recorded a net outflow of Rs. 8.7 million. Net foreign buying topped in COMB.N at Rs. 92.8 million and selling topped in TKYO.X at Rs. 116.8 million.

First Capital said the bourse continued its course in an upward trajectory, moving forth with a positive momentum and making a swift recovery following a week of low investor sentiment. The ASPI closed at 12,076, reaching its highest level since February 2022 and marking a 1.43% increase from the previous day to which the most significant contributors were COMB, HNB, SAMP, JKH, and LOLC. 

Investor sentiment remained strong, steering keen interest in banks and conglomerates, contrasting the retail focused trends of the previous weeks. Multiple crossings also took place stemming from strong investor interest in the banking sector. Turnover remained robust, standing at Rs. 2.9 billion where the banking sector led turnover at 25%, while the materials and food, beverage and tobacco sectors jointly contributed 31% to the turnover. 

The market overall continued its optimistic course driven by positive investor sentiment primarily in the banking sector, First Capital added.

NDB Securities said high net worth and institutional investor participation was noted in Pan Asia Banking Corporation, Commercial Bank and Melstacorp. Mixed interest was observed in Browns Investments, LOLC Finance and Singer Sri Lanka whilst retail interest was noted in Amana Bank, Beruwala Resorts and Renuka Agri Foods. Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank and Pan Asia Banking Corporation) whilst the sector index gained 3.48%. The share price of Commercial Bank increased by Rs. 4 to Rs. 110. The share price of Pan Asia Banking Corporation recorded a gain of Rs. 1.60 to Rs. 24.10.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 0.47%. The share price of Browns Investments closed flat at Rs. 6.20.

LOLC Finance and Singer Sri Lanka were also included amongst the top turnover contributors. The share price of LOLC Finance moved down by 20 cents to Rs. 7.20. The share price of Singer Sri Lanka appreciated by Rs. 1.70 to Rs. 19.20.