• Local investor sentiment improves on blue chips and banking sector; foreigners remain net buyers

The Colombo stock market yesterday gained sharply on improved sentiment and activity helping to close the week on a positive note.

The active S&P SL20 shot up by 3.36% and the benchmark ASPI gained by 2.75% yesterday.

For the week ASPI gained 455.57 points (5.51%) and the S&P SL20 by 196.14 points (7.76%).

Turnover yesterday was Rs. 2.2 billion involving 90 million shares. It was above the week›s daily average of Rs. 1.69 billion.  Foreigners remained net buyers with Rs. 60 million yesterday boosting the total so far in the New Year to Rs. 291 million. 

Asia Securities said the market ended the week on a buoyant note as the indices recorded their biggest single-day gains in the last two months on the back of a broad-based pickup, propelled by sharp price gains in heavyweights VONE (+6.7%), HAYL (+5.0%), EXPO (+4.1%), RICH (+9.5%), and HHL (+5.1). The financial sector counters COMB (+4.4%), SAMP (+5.3%), HNB (+5.1%), PLC (+16.1%), DFCC (+4.1%), LFIN (+6.2%), NTB (+6.4%), and NDB (+3.1%) traded higher during the session amid a positive shift in the sector-wide buying sentiments. 

Turnover reached a two-week high led by EXPO (Rs. 221 million), HAYL (Rs. 221 million), and SAMP (Rs. 141 million). 

Foreigners remained on the buying side generating a net inflow of Rs. 60 million, led by HHL (Rs. 85 million) and LION (Rs. 52 million). On the flipside, HNB recorded the highest net foreign outflow for the day at Rs. 77 million. 

Asia said ASPI trended upwards throughout the session and crossed the 8,700 level to reach a one-month high at 8,718 (+233 points). VONE (+21 points), HAYL (+20 points), COMB (+19 points), and SAMP (+18 points) were the major index movers for the day while CINS (-7 points) ended as the biggest laggard on the ASPI. The breadth of the market ended strong with price gainers outnumbering decliners by a wide margin of 169 to 33.

First Capital said the ASPI recorded the biggest gain for 2023 and extended its run for the 4th consecutive day backed by the positive sentiment within investors as India formally notified the IMF its assurance and support to Sri Lanka’s external debt restructuring. 

As a result, the broader market witnessed a sharp upward trend since the beginning of the session recording gains across the board. Banks and index heavy weights were the top contributors to the index gain whilst profit taking was witnessed on the insurance sector after recording continuous gains during the previous sessions. Thus, ASPI recorded an intraday gain of 233 points during the day to close at 8,719 whilst S&P SL20 recorded a gain of 88 points to close the day at 2,724. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Lion Brewery, and Sampath Bank. Mixed interest was observed in Expolanka Holdings, Hayleys and Hemas Holdings whilst retail interest was noted in People›s Leasing & Finance, Browns Investments and Softlogic Capital.

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys, John Keells Holdings and Hemas Holdings) whilst the sector index gained 2.51%. The share price of Hayleys gained Rs. 3.50 (4.96%) to close at Rs 74.10.

The share price of John Keells Holdings recorded a gain of Rs. 1.25 (0.92%) to close at Rs. 137.50. The share price of Hemas Holdings appreciated by Rs. 2.90 (5.08%) to close at Rs. 60.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover whilst the sector index increased by 1.39%.

Expolanka Holdings and Sampath Bank were also included among the top turnover contributors. The share price of Expolanka Holdings increased by Rs. 7.75 (4.07%) to close at Rs. 198. The share price of Sampath Bank moved up by Rs. 2 (5.26%) to close at Rs. 40.

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