The Colombo stock market gathered more strength with indices gaining by over 2% thanks to improved investor sentiment.

Turnover was Rs. 1.45 billion involving 57.5 million shares. Foreigners were net buyers, though in low value.

Asia Securities said the indices continued to recover lost ground with the passing of Budget 2023 at its second reading in Parliament, contributing to positive sentiment.

The ASPI opened sharply higher and reached a peak of 8,201 before stabilising in the narrow range of 8,180-8,196 towards the end of the session. VONE (+20 points), HAYL (+20 points), EXPO (+19 points) and RICH (+17 points) led the gains in the index. 

Turnover remained at moderate levels with contribution from block trades declining significantly (3.3% of turnover vs 11.8% of turnover on Tuesday). LIOC and EXPO were the highest contributors to turnover during the session. Market breadth turned positive with 152 counters up and 42 counters closing down. Net foreign inflow was Rs. 6.4 million.

First Capital said the bourse recorded a sharp gain for the second straight session as investor interest progressed on speculations of a possible rate cut from Thursday’s monetary policy review meeting while second reading of the Budget 2023 passing in Parliament with a majority of 121 votes further boosted the positive sentiment.

It said the Index opened on a solid footing at the 8,000 psychological level and moved on a steady uptrend as buying spree gained ground and closed positively at 8,174 gaining 173 points. Market witnessed retail interest largely centred on EXPO, hotel sector and Treasury related counters, while some institutional interest spanned on LIOC.

NDB Securities said high net worth and institutional investor participation was noted in Commercial Bank and Sampath Bank. Mixed interest was observed in Lanka IOC, Expolanka Holdings and LOLC Holdings whilst retail interest was noted in Browns Investments, SMB Leasing and Kotagala Plantations.

The Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index gained 2.83%. The share price of Lanka IOC increased by Rs. 5.50 (3.09%) to close at Rs. 183.50.

The Capital Goods sector was the second highest contributor to the market turnover whilst the sector index increased by 2.63%. Expolanka Holdings, Lankem Developments, Browns Investments and LOLC Holdings were also included amongst the top turnover contributors. The share price of Expolanka Holdings gained Rs. 9 (6.49%) to close at Rs. 147.75.  The share price of Lankem Developments moved up by Rs. 1.30 (4.39%) to close at Rs. 30.90. The share price of Browns Investments recorded a gain of 20 cents  (4%) to close at Rs. 5.20. The share price of LOLC Holdings appreciated by Rs. 2.75 (0.84%) to close at Rs. 329.

Treasury bill averages continue to decline