CSE gains to over 3-month high with ASPI crossing 9,000 points; net foreign buying persists on JKH

The Colombo stock market gathered more momentum yesterday with improved investor sentiment helping the benchmark ASPI to surpass the psychologically important 9,000-point level after over three months whilst net foreign buying continued to grow.

The All Share Price Index gained by 1.11% or 99 points to close at 9,049 points and the active S&P SL20 gained by 0.6%. Turnover improved to Rs. 1.8 billion involving 67 million shares.

The market also saw net foreign inflow of Rs. 204 million boosting the 2023’s year-to-date figure to Rs. 862 million. Top blue chip JKH saw fourth day of strong foreign interests with net buying of Rs. 224.6 million increasing its four-day tally to Rs. 649 million. 

Asia Securities said the ASPI crossed the 9,000 level to reach a three-month high on Thursday as domestic investors continued taking positions in banking stocks following the recent positive shift in sector-wide buying interest. 

SAMP (+4.6%), COMB (+2.0%), COMBX (+7.8%), ABL (+6.9%), PABC (+12.5%), SEYBX (+7.9%), and UBC (+8.1%) saw sharp gains within the sector. Concurrently, SCAP (+1.3%), PACK (+3.2%), TKYOX (+5.2%), and LHCL (+8.1%) closed higher on retail buying. 

Market turnover was led by LIOC (Rs. 277 million), JKH (Rs. 238 million), SCAP (Rs. 128 million), and SAMP (Rs. 106 million). SAMP ended as the biggest contributor to the ASPI (+18 points), followed by JKH (+11 points), and COMB (+10 points). The breadth of the market was positive with 118 price gainers and 65 decliners.

First Capital said the index continued to thrive in the green for the third straight session while closing at a three-and-a-half-month high as the ASPI surpassed the 9,000 psychological level. 

During the day, investor interest persistently gathered on Banking counters such as SAMP, COMB and HNB. Index opened on a solid footing and gradually climbed high reaching an intraday high of 9,077 as investors rallied largely on blue chip counters. 

ASPI continued to remain high through the rest of the session on the back of positive investor sentiment and closed for the day at 9,022 gaining 72 points where the index surpassed the 9,000 level for the first time after 14 October 2022. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings and Melstacorp. Mixed interest was observed in Lanka IOC, Sampath Bank and Expolanka Holdings whilst retail interest was noted in Softlogic Capital, Amana Bank and Browns Investments.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings) whilst the sector index gained 1.37%. The share price of John Keells Holdings gained Rs. 3.50 (2.50%) to close at Rs. 143.50.

The Energy sector was the second highest contributor to the market turnover (due to Lanka IOC) whilst the sector index decreased by 1.30%. The share price of Lanka IOC decreased by Rs. 2.75 (1.35%) to close at Rs. 200.50.

Softlogic Capital, Sampath Bank and Melstacorp were also included amongst the top turnover contributors. The share price of Softlogic Capital moved up by 20 cents to Rs. 16.20. The share price of Sampath Bank gained by Rs. 2 (4.64%) to Rs. 45.10. The share price of Melstacorp closed flat at Rs. 53.