Stock market ends week on new high

The Colombo stock market ended the week on a new high thanks to rebound in investor sentiments and strategic buying. 

The ASPI and the S&P SL20 gained 7.6% and 9.3% respectively whilst recording an average daily turnover of Rs. 3.16 billion.

Yesterday, the turnover was above average at Rs. 4 billion involving 126 million shares. Indices closed on the up with ASPI higher by 0.7% and S&P SL20 by 1.2%.

Asia Securities said the indices continued their uptrend and ended the week on a strong footing marking a sixth consecutive session of gains yesterday, mainly led by SAMP (+10.8%), LIOC (+6.2%), CFVF (+13.8%), FCT (+7.9%), and CALT (+11.0%). 

On the contrary, retail active stocks EXPO (-0.5%), CICX (-0.5%), RCL (-0.3%), LOLC (-1.1%), CICN (-1.4%), and HAYL (-1.5%) witnessed some stabilisation following consecutive sessions of upward momentum. Activity was seen at stronger levels with turnover crossing Rs. 4 billion mark boosted by foreign buying in EXPO (Rs. 1 billion). 

The ASPI initially declined to a low of 8,617 (-87 points) at market open due to profit-booking at higher levels ahead of the weekend. Following this, the index reversed losses and trended towards the 8,800 mark before closing out at 8,770 (+66 points). EXPO continued as the top turnover generator (Rs. 1.5 billion) followed by LIOC (Rs. 593 million), and CFLB (Rs. 285 million). The breadth of the market ended neutral with 95 price gainers and 97 decliners. 

First Capital said the bourse closed strongly in the green territory, following the continuous upward momentum throughout the week. In the beginning, market witnessed dull sentiment where index dropped by over 80 points. 

As investor participation started to escalate on CFVF, FCT and CALT following the weekly auction results, investor sentiment improved comparatively as retailers expect interest rates to ease in the coming period. Meanwhile, the sentiment was further bolstered by the fall in inflation to 61.0% in November from 66.0% in October. 

As a result, the index gradually recovered and closed the day at 8,770, gaining 66 points. Turnover continued to strengthen to 2-month high of Rs. 4 billion (+151% cf. monthly average turnover of Rs. 1.6 billion). Transportation sector solely contributed 36% to the market turnover supported by the off-board transaction of EXPO amounted to Rs. 1.1 billion. Moreover, net foreign buying of Rs. 1.1 billion was enticed during the day as SG holdings continued to buy back a sizable quantity of the shares of EXPO.