Stock market gains strength; indices at new recent highs

The Colombo stock market gathered more momentum yesterday with indices hitting new recent highs on improved turnover. 

The All Share Price Index (ASPI) gained by 36 points or 0.47% and the S&P SL20 improved by 0.7% or 21 points to record the best gain in recent times. Turnover improved to Rs. 2.7 billion from Rs. 1.7 billion on Tuesday, whilst volume amounted to 88 million shares against the 68 million shares the previous day. 

First Capital said the bourse flourished in the green pitch for the second consecutive day, while ASPI notched a fresh record high of almost nine weeks. 

“Index soared during the first 30 minutes of trading, reaching an intraday peak at 7,665 and thereafter, levelled off till the latter part of session. Afterwards, the index experienced a downside trend while closing at 7,641,” First Capital added. 

It said turnover was driven by gains in the Transportation sector, followed by the Banking sector, accounting for a joint contribution of 47%. 

Asia Securities said the indices commenced the session on a firm note and maintained positive momentum throughout the day, driven by price gains in active counters such as EXPO, LOLC, HNB and HAYL. HNI, while retail investors dominated activity and pushed turnover to stronger levels. EXPO led in terms of turnover accounting for 26%.

Transportation, Banking, Diversified Financials and Capital Goods sectors led activity, collectively accounting for 75.5% of turnover. 

Asia said foreigners recorded a net outflow of Rs. 155.6 million while their participation increased to 15.7% of turnover (previous day 2.4%). Estimated net foreign buying topped in TKYO.X at Rs. 14.2 million and net foreign selling topped in PLC.N at Rs. 96.1 million. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Development Finance, Expolanka Holdings and LOLC Holdings.

It said high net worth and institutional investor participation remained subdued for the day. Mixed interest was observed in Expolanka Holdings, LOLC Holdings and Royal Ceramics, whilst retail interest was noted in Browns Investments, People’s Leasing and Finance and SMB Leasing non-voting. 

The Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index gained 4.77%. The share price of Expolanka Holdings increased by Rs. 2.30 (4.78%) to close at Rs. 50.40.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank), whilst the sector index increased by 0.23%. The share price of Hatton National Bank gained Rs. 2 (1.48%) to close at Rs 137.25.

LOLC Holdings, Browns Investments and Dipped Products were also included amongst the top turnover contributors. The share price of LOLC Holdings moved up by Rs. 8 (2%) to close at Rs. 409. The share price of Browns Investments closed flat at Rs. 6.30. The share price of Dipped Products appreciated by Rs. 1.30 (2.49%) to close at Rs. 53.50.