Colombo stock market mark 10th consecutive day of gain

Wednesday, 10 April 2024 02:06 - - {{hitsCtrl.values.hits}}

The Colombo stock market yesterday marked its 10th consecutive gain as investor sentiment remained upbeat though showing signs of waning.

On a choppy day for indices in tandem with profit taking, the benchmark ASPUI finished the day up 42 points or 0.3% whilst the S&P SL20 gained by 3 points. Turnover was Rs. 2.5 billion involving 135 million shares. Foreigners turned net sellers yesterday.

Asia Securities said the market continued its upward momentum for a 10th consecutive session on Tuesday (09), driven by TAP (+4.4%), CALT (+5.0%), VONE (+3.4%), PLC (+3.5%), RCL (+2.5%), AEL (+3.5%), and PARQ (+4.8%).

BREW (+10 points), VONE (+4 points), and RCL (+4 points) were the key index drivers during the session while LIOC (-5 points) ended as the biggest laggard on the ASPI. The breadth of the market remained positive with 129 price gainers and 57 losers.

Market activity continued at healthy levels with turnover led by TAP (Rs. 398mn), COMB (Rs. 150mn), and HAYL (Rs. 109mn).

Foreigners recorded a net outflow of Rs. 7.7mn. Net foreign buying topped in TAP.N at Rs. 48.6mn and selling topped in LALU.N at Rs. 26.1mn.

First Capital said the Bourse remained firmly in the green zone, reflecting its bullish streak for the 10th consecutive session, driven by an increase in retail participation, with trades reaching 19,000 during the day.

Initially, mixed sentiment prevailed, leading to profit booking in selected banking stocks. However, as the day progressed, bullish momentum strengthened supported by active buying in banks and heavyweight index stocks, resulting in 42 points gain to close at 11,962. Moreover, investor interest centered on CALT throughout the day, fuelled by anticipation of a potential dividend announcement. Turnover remained healthy, a 16% increase compared to the month’s daily average, driven by high net worth and institutional investors participating in off-board transactions, contributing 20% to total turnover. Both banking and consumer durables sectors collectively accounted for 40% of turnover, signalling positive market rebound and investor confidence.

NDB Securities said high net worth and institutional investor participation was noted in Ambeon Capital, Hatton National Bank and Hayleys. Mixed interest was observed in Commercial Bank, Sampath Bank and Capital Alliance whilst retail interest was noted in Citrus Leisure rights, People’s Leasing & Finance and SMB Leasing.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank, Hatton National Bank and Pan Asia Banking Corporation) whilst the sector index edged up by 0.11%. The share price of Commercial Bank closed flat at Rs. 110. The share price of Hatton National Bank recorded a gain of one Rupee to Rs. 201.00. The share price of Pan Asia Banking Corporation appreciated by 40 cents to Rs. 23.60.

The Consumer Durables & Apparel sector was the second highest contributor to the market turnover (due to Ambeon Capital) whilst the sector index decreased by 0.18%. The share price of Ambeon Capital increased by 40 cents to Rs. 9.50.

Hayleys was also included amongst the top turnover contributors. The share price of Hayleys moved up by 70 cents to Rs. 89.30.