Colombo stock market strengthens further

• Indices post biggest day gain in 2 months
• Net foreign buying persists; over Rs. 1 b so far in Oct. boosting YTD figure to Rs. 16.7 b

The Colombo stock market gathered further strength yesterday with sharp gains by indices and more importantly net foreign buying with October so far producing over Rs. 1.4 billion thereby boosting year to date figure to Rs. 16.7 billion. 

The All-Share Price Index gained by 3.3% or 295 points and the active S&P SL20 rose by 4.4% or 117 points. Turnover was Rs. 2.5 billion.

Asia Securities said the indices recorded their biggest single-day gain in two months yesterday on improved sentiment in the market as investors’ concerns and uncertainties over new taxation abated following the recent gazette issue. 

Asia said the ASPI opened trading on a high note crossing the 9,000 levels with a gap-up of 158 points (+1.8%) and stayed on an upward trajectory throughout the session to close above the 9,100 mark at 9,149 (+295 points or 3.3%). On the flipside, the S&P SL20 index outperformed the ASPI with a gain of 4.4% (+117 points). 

While  front-liners LIOC (+10.9%), EXPO (+8.2%), LOFC (+9.9%), LOLC (+7.1%), SAMP (+5.4%), CIC (+5.4%), CICX (+5.7%) and HAYL (+7.3%) extended their upside bounce for a second consecutive session, mid-cap stocks LHCL (+5.9%), ASIR (+9.4%), SPEN (+3.1%), SLTL (+9.3%), and KCAB (+17.7%) recorded stronger volumes and ended with substantial gains on the back of renewed buying interest. 

LIOC (+27 points), EXPO (+27 points), HAYL (+26 points), RICH (+20 points), and SAMP (+18 points) ended as the biggest contributors to the ASPI. 

Turnover was supported by LIOC (Rs. 537 million), EXPO (Rs. 252 million), and JKH (Rs. 238 million). Notably, net foreign inflow for the day picked up to Rs. 258 million boosted by net buying in JKH (Rs. 181 million) and CICN (Rs. 64 million). The breadth of the market ended strong with price gainers outnumbering decliners by a wide margin of 172 to 30. 

First Capital said positive sentiment extended yet another day while recording the highest intraday gain in two months as investor confidence reinstated with the clarity on the tax front. Index opened high and gained sharply during the first few minutes into trading to break 9,000 and continued to edge up higher during the remainder of the session to close the day at 9,149, gaining 295 points. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, CIC Holdings and Commercial Bank. Mixed interest was observed in Lanka IOC, Expolanka Holdings and CIC Holdings nonvoting whilst retail interest was noted in SMB Leasing (voting and nonvoting), Browns Investments and LOLC Finance.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 3.39%. The share price of John Keells Holdings moved up by Rs. 1.50 (1.17%) to close at Rs. 130.

Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index increased by 9.79%. The share price of Lanka IOC increased by Rs. 23.25 (10.89%) to close at Rs. 236.75.

Expolanka Holdings and CIC Holdings (voting and nonvoting) were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 12.75 (8.23%) to close at Rs. 167.75. The share price of CIC Holdings voting recorded a gain of Rs. 5 (5.42%) to close at Rs.

97.20, while the nonvoting share price appreciated by Rs. 3.80 (5.70%) to close at Rs. 70.50.