CSE finishes July with over 20% impressive gain

The Colombo stock market yesterday ended July with a significant 20% gain reinforced by bullish investor sentiment following the finalisation of Domestic Debt Optimisation framework and other positives.

In July, the benchmark ASPI gained by 1,943.77 points or 20.58% and the active S&P SL20 by 595.95 points or 22%. In June, the ASPI gained by 10.4% and S&P S SL20 by 12%.

Daily average turnover in July was Rs. 3.65 billion.

Yesterday both indices enjoyed gains ASPI by 0.6% and S&PS L20 by 1%. Turnover was Rs. 2.7 billion involving 92 million shares.

Asia Securities said the market commenced the week on a positive note with the ASPI continuing its upward trend for a third consecutive session. Importantly, EXPO saw renewed buying interest during the session resulting in a 7.0% daily gain with share buy-back expectations. MGT extended sharp price gains for a second session boosted by stronger-than-expected quarterly earnings. 

Secondly, banks saw steady investor activity led by DFCC (+1.5%), HNBN (+2.2%), HNBX (+3.5%), COMBX (+1.0%), and NTBN (+1.0%). 

EXPO contributed the most to the ASPI (+18 points), followed by SFCL (+17 points), and HNBN (+13 points) while CINS (-16 points), SAMP (-12 points) and LOLC (-4 points) came in as the biggest laggards on the ASPI.

Turnover was led by EXPO (Rs. 383 million), JKH (Rs. 224 million), and MGT (Rs. 174 million).

Asia said foreigners recorded a net outflow of Rs. 39.1 million. Net foreign buying topped in TKYO.X at Rs. 44.3 million and selling topped in JKH at Rs. 86.3 million.

First Capital said the market commenced the day on a sluggish pace but eventually gained momentum driven by notable investor interest on EXPO and HNB. ASPI ultimately settled in the green zone and recorded a 17-month high of 11,387, gaining 75 points during the day. 

EXPO›s upswing was propelled by the improvements in global freight rates, as it achieved an unprecedented pre-COVID low (currently FBX at USD 1,323) and holds the potential for future recovery. First Capital said the recovery in oil prices has also sparked heightened investor interest for LIOC, while MGT sustained its appeal among investors due to an impressive performance in 1QFY24, surpassing expectations. The banking counters experienced mixed levels of investor sentiment throughout the day. 

NDB Securities said high net worth and institutional investor participation was noted in Seylan Bank, Hayleys, and Richard Pieris & Company. Mixed interest was observed in Expolanka Holdings, John Keells Holdings, and Hayleys Fabric whilst retail interest was noted in Browns Investments, People›s Leasing & Finance, and LOLC Finance.

The Banking sector was the top contributor to the market turnover (due to Seylan Bank and Sampath Bank) whilst the sector index gained 0.50%. The share price of Seylan Bank recorded a gain of 90 cents to Rs 46.30. The share price of Sampath Bank declined by Rs 1.40 to Rs 75.

The  Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 0.84%. The share price of John Keells Holdings gained 75 cents to Rs 167.75.

Expolanka Holdings and Hayleys Fabric were also included among the top turnover contributors. The share price of Expolanka Holdings increased by Rs 9.75 to Rs 149.50. The share price of Hayleys Fabric moved up by Rs 2.90 to Rs 34.50.

Separately Mahaweli Coconut Plantations and Chevron Lubricants announced their dividends of Rs. 1.50 and Rs. 2 per share respectively.