Colombo stock market posts sharp gain as investor sentiment rebounds

• ASPI gains 1,030 points (13.9%) over last four sessions while more liquid S&P SL20 index gains around 409 points (17%)

The Colombo stock market yesterday posted sharp gains with improved turnover as investor sentiment turned bullish.

The active S&P SL20 Index gained by 5.5% and the benchmark ASPI gained by 4.4%. Turnover was Rs. 2.75 billion involving 178 million shares. 

Asia Securities said the market commenced the week on a buoyant note with the ASPI recording a gain of 359 points, its biggest single-day gain since 27 April 2022, boosted by price gains in front-line stocks across sectors such as EXPO (+13.1%), BIL (16.2%), LOFC (+23.8%), AAIC (+40.0%), SCAP (+30.2%), KVAL (+14.1%), WATA (+12.4%), BRWN (+14.6%), SHL (19.1%), and LLUB (+28.6%). 

Turnover reached a nine-week high on the back of broad-based retail and HNI buying. EXPO generated the highest turnover during the session (Rs. 851 million), followed by BIL (Rs. 365 million) and LOFC (Rs. 230 million). 

Asia said the ASPI opened trading on a positive note, breaching the 8,300 level with a sharp gap-up of 217 points and trended towards the 8,500 level as investors continued bargain buying, capitalising on the recent sell-off. After touching an intra-day high of 8,498 (+400 points), the index stabilised in the closing hour and eventually ended at 8,458 (+359 points). 

Importantly, the ASPI has gained around 1,030 points (+13.9%) over the last four sessions while the more liquid S&P SL20 index has gained around 409 points (+17.02). The breadth of the market remained strong as price gainers surpassed decliners 172 to 39.

Asia also said foreigners recorded a net outflow of Rs. 55.9 million while their participation increased to 3.7% of turnover (previous day 2.3%). Net foreign buying topped in CARG at Rs. 41.3 million and selling topped in HNB.N at Rs. 83 million.

First Capital said ASPI continued its upward trajectory for the fourth consecutive day and closed the session at 8,458 (+4.44%), on the back of newfound clarity on country’s economic front, after Prime Minister Ranil Wickremesinghe addressed the nation on Monday. 

Market turnover improved and recorded a near three-week high. Transportation segment continued to lead the top turnover list with a contribution of 31% to daily aggregate turnover whilst Food, Beverage and Tobacco segment had the next biggest contribution of 20%. 

NDB Securities said high net worth and institutional investor participation were noted in Hatton National Bank, Cargills, and Sanasa Development Bank. Mixed interest was observed in Expolanka Holdings, Softlogic Life Insurance, and LOLC Holdings whilst retail interest was noted in Browns Investments, SMB Leasing non-voting and LOLC Finance. 

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 13.11%. The share price of Expolanka Holdings increased by Rs. 25.50 (13.13%) to close at Rs. 219.75. 

Food, Beverage and Tobacco sector was the second-highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 3.93%. The share price of Browns Investments gained Rs. 1.10 (16.18%) to close at Rs. 7.90. 

LOLC Finance, Softlogic Life Insurance, and Softlogic Capital were also included among the top turnover contributors. The share price of LOLC Finance moved up by Rs. 1.90 (23.75%) to close at Rs. 9.90. The share price of Softlogic Life Insurance recorded a gain of Rs. 20.70 (39.96%) to close at Rs. 72.50. The share price of Softlogic Capital appreciated by Rs. 1.90 (30.16%) to close at Rs. 8.20.

Separately Access Engineering and Elpitiya Plantations announced interim dividends of 75 cents and Rs. 3 per share respectively, while Hayleys Fibre announced a final dividend of 30 cents per share.