CSE opens fresh week positively; ASPI tops 10,700 level after 16 months

The Colombo stock market began a fresh week on a positive note with indices gaining by over 1% amidst healthy turnover. 

The benchmark ASPI gained by 1.26% or 133 points to close at 10,727, overtaking the 10,700-point level after 16 months. The active S&P SL20 gained by 1.6%. Turnover was Rs. 3.1 billion involving 135.7 million shares.

Asia Securities said the ASPI extended its upward trajectory for a 11th consecutive session on Monday (17) largely on the back of LIOC (+2.9%), COMBN (+5.4%), SEYBN (+5.3%), NTBN (+3.8%), HNBN (+2.2%), SAMP (+2.0%), VONE (+4.1%), LOLC (+3.8%), and HAYL (+1.0%). 

However, AAIC (-3.3%), LOFC (-1.6%), SCAP (-1.8%), HHL (-2.4%), and FCT (-2.4%) closed in red. COMBN (+33 points) came in as the biggest index mover, followed by LOLC (+12 points), and SAMP (+12 points). Overall, 109 stocks recorded price gains during the session while 92 settled with losses.

Market turnover was driven by DFCC (Rs. 256mn), LIOC (Rs. 225mn), COMBN (Rs. 213mn), and ACL (Rs. 210mn). Asia also said foreigners recorded a net inflow of Rs. 26.3mn. Net foreign buying topped in DFCC at Rs. 28.6mn and selling topped in SAMP.N at Rs. 40.8mn. 

First Capital said commencing the week, ASPI continued to settle firmly in the green zone on the back of high retail participation. High net worth and retail interest spanned on Banking sector counters mainly COMB, SAMP and HNB after sizable profit-taking displayed during the past week. However, profit-taking was observed on mid-cap counters.  The overall buying interest in the market slightly toned down during the mid-day after the index reached an intraday high of 10,775, yet managed to sustain the bullish optimism and closed for the day at 10,728, gaining 133 points. 

Buying appetite continued on LIOC which topped the retail participation as investors were optimistic on the proposal issued by the Indian Oil Corporation for an oil distribution pipeline connecting Nagapattinam, Trincomalee and Colombo.  NDB Securities said high net worth and institutional investor participation was noted in DFCC Bank, ACL Cables, and Hatton National Bank. Mixed interest was observed in Lanka IOC, Commercial Bank, and Hayleys whilst retail interest was noted in Browns Investments, SMB Leasing nonvoting, and R I L Property. 

The Banking sector was the top contributor to the market turnover (due to DFCC Bank and Commercial Bank) whilst the sector index gained 3.28%. The share price of DFCC Bank increased by Rs 3.40  to Rs 59. The share price of Commercial Bank moved up by Rs 4.30 to Rs 84.50.

The Capital Goods sector was the second highest contributor to the market turnover (due to ACL Cables and Hayleys) whilst the sector index increased by 0.57%. The share price of ACL Cables recorded a gain of Rs 1.60 to Rs 88.10. The share price of Hayleys appreciated by 90 cents to Rs 94.90.

Lanka IOC was also included among the top turnover contributors. The share price of Lanka IOC gained Rs 4.25 to Rs 149.75. Separately Bairaha Farms announced its final dividend of Rs. 4 per share.