Colombo stock market sustains third consecutive week of gain

The Colombo stock market yesterday marked its third consecutive week of gain signalling sustained bullish investor sentiment by both locals and foreign. 

The ASPI gained 356.88 points (3.68%) while the S&P SL20 improved by 106.03 points (3.39%). The average daily turnover was Rs. 4.67 billion.

Asia Securities said following two sessions of strong buying momentum, the indices witnessed a healthy pullback on Friday as retail and HNI investors booked profits at higher levels ahead of the weekend. 

Following a 69-point gap-up to 10,141, the ASPI turned downbeat and slipped into negative territory, reaching an intra-day low of 10,022 (-50 points) dragged by price declines in heavyweights JKH (-2.6%), BIL (-1.3%), and SUN (-2.9%), along with banking stocks COMB (-2.1%), HNB (-2.9%), SAMP (-2.5%), NDB (-3.5%), DFCC (-3.6%), and SEYBX (-4.9%). 

However, the index recouped losses and managed to close with a marginal decline of 11 points, supported by RCL (+4.9%), LIOC (+1.9%), ACL (+8.8%), CFVF (+17.7%), FCT (+13.4%), TKYO (+6.9%), LCEY (+26.1%), and NIFL (+10.4%). 

Turnover on Friday remained above Rs. 5 billion for the second consecutive session on the back of activity in EXPO (Rs. 2,000 million). Especially, foreign buying dominated the stock, resulting in a significant net inflow of Rs. 1,757 million for the day. Despite the decline in the ASPI, the breadth of the market ended positive with 112 price gainers and 108 decliners.

Crossings accounted for 38.2% of turnover with 32 crossings recorded in EXPO (Rs. 1,725 million) five crossings in RCL (Rs. 160 million), one crossing each in CDB (Rs. 130 million), and MELSN (Rs. 29 million).

First Capital said the ASPI closed the day flat while profit taking was witnessed on banking sector counters. However, Capital Goods and Energy sectors neutralised the losses as the lifting of the import control on over 150 items positively impacted the sector. Index opened with a steep rise and moved amidst high volatility throughout the day and closed down marginally at 10,061, losing 11 points with distinct buying interest on Treasury counters. 

NDB Securities said high net worth and institutional investor participation was noted in Expolanka Holdings, Royal Ceramics and Citizens Development Business Finance. Mixed interest was observed in Lanka IOC, ACL Cables and Lankem Developments, whilst retail interest was noted in SMB Leasing nonvoting, First Capital Holdings and First Capital Treasuries. 

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index gained 0.22%. The share price of Expolanka Holdings increased by 50 cents to close at Rs. 226.75.

The Capital Goods sector was the second highest contributor to the market turnover (due to Royal Ceramics and ACL Cables), whilst the sector index edged down by 0.08%. The share price of Royal Ceramics gained Rs. 1.90 (4.88%) to close at Rs. 40.80. The share price of ACL Cables recorded a gain of Rs. 7.80 (8.84%) to close at Rs. 96.

Lanka IOC and Lankem Developments were also included amongst the top turnover contributors. The share price of Lanka IOC moved up by Rs. 5 (1.94%) to close at Rs. 262.75. The share price of Lankem Developments appreciated by Rs. 3.20 (10.42%) to close at Rs. 33.90.

Separately, Sarvodaya Development Finance announced its final dividend of 50 cents per share.