Aragalaya boost for Colombo stock market

• Both indices record highest single-day gain in over two months

 

The Colombo stock market gained sharply yesterday buoyed by positive political developments influenced by Saturday›s mass protest led by Aragalaya activists.

The benchmark ASPI shot up by over 200 points or 3% whilst the active S&P SL20 Index gained by over 4%. Turnover however was relatively low at Rs. 811 million involving 53 million shares. Year to date the ASPI and S&P SL20 are down by over 40%.

Asia Securities said the indices commenced the week on a buoyant note, largely on the back of sharp price gains in front-line stocks BIL (+14.3%), LOFC (+14.5%), EXPO (+6.9%), LOLC (+7.8%), SCAP (+12.8%), AAIC (+10.8%) and SAMP (+10.6%).

Both the indices recorded their highest single-day gain in over two months with the ASPI picking up 221 points and the S&P SL20 index gaining 93 points.

SAMP provided the biggest boost to the ASPI, contributing 28 points to the index, followed by EXPO (21 points), BIL (21 points) and LOLC (+15 points). Turnover was led by EXPO (Rs. 238 million), BIL (Rs. 97 million), and LIOC (Rs. 91 million).

Earlier, the ASPI opened trading with a gap-up of 108 points at 7,189, however the index immediately dropped down to 7,108. Following this, the index trended firmly upwards and touched an intra-day high of 7,378 (+297 points) before closing at 7,302 (+221 points). The breadth of the market ended strong with price gainers outnumbering decliners by a wide margin of 145 to 24.

Asia also said foreigners recorded a net inflow of Rs. 3.4 million). Net foreign buying topped in RICH at Rs. 4.2 million and selling topped in HAYC at Rs. 3.2 million.

First Capital said the Bourse commenced the week on a positive note while recording the highest intraday gain in nearly two months as investor sentiment improved following the announced resignation of President Gotabaya Rajapaksha on 13 July.

The Index witnessed volatile trading during the start of the session and went on to close the day at 7,302, gaining 221 points as investors actively participated on index heavy weights. Despite the gain, turnover was below the YTD average turnover of Rs. 3.3 billion as investors remained side-lined as they continue to keep a close eye on the progress of the formation of an All-Party Government. Transportation sector solely contributed 29% to the overall turnover while the Food, Beverage and Tobacco sector contributed 17%.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings. Mixed interest was observed in LOLC Holdings, Lanka IOC and Expolanka Holdings whilst retail interest was noted in Browns Investments, LOLC Finance and Industrial Asphalts.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 6.90%. The share price of Expolanka Holdings increased by Rs. 11.25 (6.90%) to close at Rs. 174.25.

Food, Beverage and Tobacco sector was the second-highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 2.65%. The share price of Browns Investments gained 90 cents (14.29%) to close at Rs. 7.20.

Lanka IOC, LOLC Finance and LOLC Holdings were also included among the top turnover contributors. The share price of Lanka IOC moved up by 10 cents to close at Rs. 74.30. The share price of LOLC Finance recorded a gain of 90 cents (14.52%) to close at Rs. 7.10. The share price of

LOLC Holdings appreciated by Rs. 28.50 (7.82%) to close at Rs. 392.75.