Colombo stock market sustains upward momentum

• Banking and Consumer Durables sector counters on lead

The Colombo stock market continued its upward momentum yesterday with the benchmark index crossing the 12,000-points mark mid-day before cooling off.

The All Share Price Index finished the day at 11,992.91 points, up 138 points or 1.16%. The active S&P SL20 gained by nearly 2%. Turnover was Rs. 3.5 billion involving 139 million shares.

First Capital said investors continued the positive sentiment for the 11th consecutive day as Banking sector and Consumer Durables & Apparel sector counters contributed towards the momentum. The Colombo Bourse opened the day on a negative note with dull investor sentiment. However, the index rebounded quickly and surged to an intraday high of 12,008 in the afternoon. Ultimately, the index closed the session at 11,993 gaining only 138 points. Notably, HNB and SAMP recorded 4.6% and 1.0% price increases respectively whilst, Consumer Durables & Apparel sector stocks saw renewed buying interest following the announcement that export earnings from the Apparel and Textile sector rose by 17.5%YoY, reaching $ 512.1 million in August 2024  compared to 23 August. Additionally, HNB, JKH, COMB, DFCC and SAMP emerged as the top positive contributors to the index.  

On the back of nine off-board transactions, turnover marked over 100% increase from the monthly average. The Banking sector solely contributed 44% to the overall turnover whilst the Capital Goods and Consumer Durables sectors jointly contributed 22% to the total turnover.

NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank, CIC Holdings, Dialog Axiata. Mixed interest was observed in Hatton National Bank, Teejay Lanka and Commercial Bank whilst retail interest was noted in SMB Leasing, Industrial Asphalts and Renuka Agri Foods.

Furthermore, foreigners closed as net sellers.

The Banking sector was the top contributor to the market turnover (due to Sampath Bank, Hatton National Bank and Commercial Bank) whilst the sector index gained 2.76%. The share price of Sampath Bank increased by 80 cents to Rs. 78.50. The share price of Hatton National Bank gained Rs. 9.50 to Rs. 214.25. The share price of Commercial Bank appreciated by Rs. 2 to Rs. 103.25.

Teejay Lanka and CIC Holdings were also included amongst the top turnover contributors. The share price of Teejay Lanka moved up by Rs. 2 to Rs. 42.50. The share price of CIC Holdings closed flat at Rs. 75.