CSE enjoys bullish week with over 7% gain

The Colombo stock market yesterday closed one of its most bullish weeks in history as investors gathered growing confidence over prospects for listed equities under the regime of President Anura Kumara Dissanayake.

During the week, the benchmark ASPI gained by 7.4% and the active S&P SL 20 by 10%.

Yesterday the market gained by over 0.8% amidst profit taking mid-day and investors returning to buying side later on.

Turnover yesterday was Rs. 2.9 billion lower from Rs. 4.3 billion on Thursday but in tandem with the average of Rs. 2.85 billion for the week.

First Capital said broad market volatility continued for the second consecutive day, amid month-end profit-taking and increased investor participation. The ASPI experienced a downturn in the first hour of trading as month-end selling pressure emerged. However, the index recovered gradually during the day and closed the day at 11,774 gaining 102 for the 9th consecutive day amidst the declining interest rates for government securities. Consumer services sector counters gained revitalised interest on the back of resumed online visa applications for the tourists. Moreover, MGT witnessed a 4.9% price increase during the day whilst HNB, HAYL, AEL, SPEN, and JKH emerged as the top positive contributors to the index.

Amidst the improved participation of HNWIs turnover marked a 120.0% increase from the monthly average standing at Rs. 1.3 billion. The Capital Goods sector solely contributed 36% to the overall turnover whilst the Banks and Materials sectors jointly contributed 34% to the total turnover.

NDB Securities said high net worth and institutional investor participation was noted in Access Engineering, Hatton National Bank and CIC Holdings. Mixed interest was observed in John Keells Holdings, Aitken Spence and Sampath Bank whilst retail interest was noted in Browns Investments, Marawila Resorts and LOLC Finance.

Foreign participation in the market activity remained at subdued levels with foreigners closing as net buyers.

The Capital Goods sector was the top contributor to the market turnover (due to Access Engineering, John Keells Holdings and Aitken Spence) whilst the sector index gained 1.26%. The share price of Access Engineering increased by Rs. 1.50 to Rs. 23.50. The share price of John Keells Holdings moved up by Rs. 1.25 to Rs. 172.75. The share price of Aitken Spence recorded a gain of Rs. 3 to Rs. 124.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank and Sampath Bank) whilst the sector index increased by 0.72%. The share price of Hatton National Bank gained Rs. 4 to Rs. 203.75. The share price of Sampath Bank declined by one Rupee to Rs. 77.