Thursday May 02, 2024
Thursday May 02, 2024
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The Colombo stock market gathered more momentum yesterday with the more active S&P SL20 Index reaching an all-time high as local investors remained bullish, powering a Rs. 7 billion turnover.
The S&P SL20 gained by 1.4% or 49.25 points to close at a new high of 3,553 points. The ASPI was subdued and gained by 26 points or 0.3%. The high turnover was due to the trading of 284.4 million shares.
The recent rally saw both the S&P SL20 and the benchmark All Share Price Index (ASPI) end September with 5% gain. Year-to-date (YTD) ASPI is up 39.65% and S&P SL20 by 34%. The Colombo Stock Exchange’s (CSE) market capitalisation is up by 42% YTD to Rs. 4.215 trillion.
CSE’s star performer Expolanka Holdings continued to surprise even the most optimistic investor and dumbfounded the naysayers. Expolanka peaked to a new high of Rs. 201.25 before closing at Rs. 198.25, up Rs. 6 or 3%. It saw 10.6 million shares change hands via 4,773 trades for Rs. 2 billion, accounting for 30% of day›s total.
Expolanka’s market capitalization of Rs. 389.5 billion or 9.26% of CSE’s total was almost double that of the third place and former number one JKH’s Rs. 197.6 billion. Second most valuable LOLC Holdings dipped marginally yesterday whilst its market capitalisation was Rs. 294.6 billion, around Rs. 95 billion below Expo.
Expo contributed over 26 points to yesterday’s ASPI gain, whilst JKH chipped in with 9.6%.
Expolanka remains the undisputed star of CSE, and Asia Securities said, despite witnessing an initial decline, the market ended the session on a positive note with the ASPI extending its record-breaking streak, while the more liquid S&P SL20 Index scaled a new all-time high at 3,535 level, surpassing its previous high recorded in January 2021 (3,514 points).
It said turnover improved from Wednesday’s levels, supported by retail and HNI buying in selected heavyweight counters while overall market breadth continued positive with 106 stocks closing higher against 86 decliners.
“The ASPI touched the 9,500 level during market open, however, witnessed a subsequent decline to 9,400 dragged by price losses in CLC and BIL as investors engaged in mild profit-taking activities in these stocks. The index regained momentum owing to price gains in EXPO and JKH and reversed its early losses to close in green for the seventh consecutive session,” Asia said.
On the sectoral front, hotel stocks witnessed a significant pickup in prices during the session on some positive bias in the market.
Asia said foreigners recorded a net outflow of Rs. 527 million while their participation increased to 4.5% of turnover (previous day 0.5%). Net foreign buying topped in LOLC at Rs. 6.8 million and net foreign selling topped in JKH at Rs. 491.6 million. Crossings accounted for 12% of turnover with six recorded in JKH (Rs. 447 million), eightin Browns (Rs. 181 million), two in Expo (Rs. 140 million) and one each in NDB
(Rs. 38 million) and Lanka Aluminum (Rs. 30 million).
First Capital said the bourse finished strongly in the green, continuing its bull rally for the seventh straight session while recording a turnover at a three-week high.
“Index opened on a short-lived upswing, hitting an intraday low of 9,395 within the first half hour of trading. Subsequently, the market displayed sizable volatility as the bullish sentiment demonstrated by investors tailed off. However, the market picked up towards the latter part of the session and closed for the day at 9,460,” First Capital added.
It said turnover was led by a joint contribution of 52% from the Transportation and Capital Goods sectors.
NDB Securities said high net worth and institutional investor participation was noted in Expolanka Holdings, Brown and Company and John Keells Holdings. Mixed interest was observed in LOLC Holdings, Teejay Lanka and Royal Ceramics whilst retail interest was noted in Browns Investments, Marawila Resorts and Ambeon Capital. Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.
The share price of Brown & Company appreciated by Rs. 14.25 (6.96%) to close at Rs. 219.
Browns Investments and LOLC Holdings were also included amongst the top turnover contributors. The share price of Browns Investments lost 30 cents (2.86%) to close at Rs. 10.20. The share price of LOLC Holdings recorded a loss of Rs. 1.25 (0.20%) to close at Rs. 620.
Separately, Kelani Valley Plantations and Hayleys Fibre announced their interim dividends of 70 cents and one rupee per share respectively.
