Bullish investor sentiment boosts Colombo stock market to new recent high

The Colombo stock market rose to a new recent high yesterday as bullish investor sentiment boosted trading. 

The active S&P SL20 gained by 1.8% and the benchmark ASPI by 1% or 124.5 points. Turnover was Rs. 3.2 billion involving 117.35 million shares. The market also saw net foreign buying.

Asia Securities said the ASPI commenced the session with a gap-up of 80 points at 11,875 and continued its upward trajectory reaching an intra-day high of 11,940 in the first hour of trading (+145 points). However, the index slowed down during the midday session dipping below the 11,900 mark. 

Nevertheless, the ASPI saw a sharp pick-up in the second half of the session, closing at a 12-month high at 11,920 (+125 points). Importantly, the ASPI marked the 9th consecutive session of price gains.

Sectorally, banking and finance counters witnessed strong buying with notable price gains seen in SAMP (+3.7%), COMBN (+4.5%), NDB (+3.6%), COCR (+3.9%), PLC (+2.7%), VFIN (+2.7%), and LFIN (+1.8%). Front-line stocks LIOC (+3.3%), VONE (+4.6%), and BIL (+3.8%) supported the ASPI’s upward momentum during the session. 

Furthermore. LALU experienced heightened buying activity, resulting in a sharp gain of 5.3%.

 

COMBN (+29 points) contributed the most to the ASPI during the session, followed by SAMP (+21 points). The breadth of the market was positive with price gainers outnumbering decliners by a margin of 118 to 61.

Market turnover was driven by SAMP (Rs. 676 million), JKH (Rs. 207 million), HHL (Rs. 192 million), and COMBN (Rs. 189 million). 

Foreigners remained on the buying side, generating a net inflow of Rs. 104 million led by SAMP (Rs. 96 million), AHPL (Rs. 65 million), and COMBN (Rs. 65 million). Net foreign selling topped in LALU.N at Rs. 87.8 million.

First Capital said the Bourse continued to witness gains for the 9th consecutive day while ASPI peaked to the highest in 2 years, amidst heightened investor interest on Banking sector counters while mid-cap companies such as LIOC and BIL too supported the ASPI hike. 

The Index opened on a strong footing and jumped to an intra-day high of 11,943 shortly into the market opening. Subsequently, the index slid gently low, yet closed in the green territory at 11,920 gaining 125 points. Within the Banking sector, COMB, SAMP and NDB positively contributed to the ASPI whilst HHL and CCS attracted strong buying appetite during the day. Meanwhile, CFVF too witnessed some interest in lieu of the XD date, 9 April 2024. Turnover continued to show robust improvement and was above 50.9% of month’s daily average with Banking sector (42%) and Capital Goods sector (18%) jointly dominating 60% of overall turnover

NDB Securities said high net worth and institutional investor participation was noted in Sampath Bank, John Keells Holdings and Hemas Holdings. Mixed interest was observed in Commercial Bank, Lanka Aluminium Industries and Lanka IOC whilst retail interest was noted in Citrus Leisure rights, Browns Investments and LOLC Finance. 

The Banking sector was the top contributor to the market turnover (due to Sampath Bank and Commercial Bank) whilst the sector index gained 2.58%. The share price of Sampath Bank increased by Rs. 2.90 to Rs. 80.90. The share price of Commercial Bank recorded a gain of Rs. 4.75 to Rs. 110.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Hemas Holdings) whilst the sector index increased by 0.28%. The share price of John Keells Holdings closed flat at Rs. 199. The share price of Hemas Holdings moved up by Rs. 2 to Rs. 83.

Lanka Aluminium Industries was also included amongst the top turnover contributors. The share price of Lanka Aluminium Industries appreciated by Rs. 1.30 to Rs. 25.70.