• Foreign inflow persists with net buying of Rs. 793 m led by Expolanka
• Sept.-to-date net foreign inflow tops Rs. 5 b mark
• Local interests return to banking sector stocks

The Colombo stock market yesterday turned bullish propelling the benchmark ASPI to over 10,000 points level whilst turnover and net foreign buying rose further. 

The ASPI gained by 158 points or 1.6% to close at 10,072 points. The active S&P SL20 improved by 72 points or 2.3%.  

Turnover was Rs. 5.33 billion involving 189 million shares. Major contributors to ASPI gain yesterday were Sampath Bank (43 points), JKH (39 points) followed by Commercial Bank, HNB and SDB.

Asia Securities said the ASPI surpassed the psychological level of 10,000 with JKH group leading the charge, boosted by the long-awaited gaming licence announcement coupled with faster-than-expected recovery in both domestic and overseas tourism operations going into the key winter holiday season. 

JKH ended with a gain of 8.6% while KHL (+8.2%) and AHPL (+11.7%) closed significantly higher on the back of renewed retail and HNI buying momentum. 

Turnover amounted to Rs. 5,331 million led by EXPO (Rs. 1,087), which recorded Rs. 945 million via foreign crossings. The ASPI staged a strong start to the session, breaching the 10,000 mark, for the first time in five months, with a gap of 140 points (+1.4%) and continued momentum to reach an intra-day high of 10,173 (+259 points) in the first hour of trading. 

Following this, mild profit-taking at higher levels weighed on the index, dragging it down to 10,072 (+158 points) at market close. 

Sectorally, banking stocks continued to witness positive momentum with SAMP (+11.8%), ABL (+12.1%), DFCC (+4.9%), HNB (+4.2%), COMB (+4.5%), PABC (+3.3%), and NDB (+4.3%) recording sharp gains for a second straight session. The breadth of the market remained positive with 115 price gainers and 106 decliners.

Asia also said foreigners recorded a net inflow of Rs. 792.7 million while their participation improved to 12.6% of turnover (previous day 12.1%). Net foreign buying topped in EXPO at Rs. 945.3 million and selling topped in JKH at Rs. 100 million. Crossings accounted for 22.8% of turnover with 26 crossings recorded in EXPON (Rs. 920 million), three crossings in SAMPN (Rs. 113.5 million), and two crossings in RICHN (Rs. 93 million).

First Capital also said the ASPI topped the 10,000 psychological level in today’s session as investor participation improved in Banks and NBFI counters as rumours made rounds nullifying the possibility of a local debt restructuring. 

Thus, the index gained over 200 points and crossed the 10,000 benchmark, half hour into the market opening. Moreover, buying spree intensified on JKH as investor interest renewed backed by the gazette issue on regulating and allowing casino operations in the country. However, following mid-session, profit taking was witnessed on selected counters yet the index remained strong in the green and closed at 10,072 gaining 158 points. 

NDB Securities said high net worth and institutional investor participation was noted in Expolanka Holdings, Sampath Bank, Richard Pieris & Company. Mixed interest was observed in John Keells Holdings, Lanka IOC and ACL Cables whilst retail interest was noted in SMB Leasing, HNB Finance and Browns Investments. 

Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and ACL Cables) whilst the sector index gained 4%. The share price of John Keells Holdings gained Rs. 12 (8.63%) to close at Rs. 151. The share price of ACL Cables appreciated by Rs. 8.50 (10.66%) to close at Rs. 88.20.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index decreased by 0.33%. The share price of Expolanka Holdings decreased by 75 cents (0.33%) to close at Rs. 226.25.

Lanka IOC and Sampath Bank were also included amongst the top turnover contributors. The share price of Lanka IOC moved down by Rs. 5 (1.90%) to close at Rs 257.75. The share price of Sampath Bank recorded a gain of Rs. 4.30 (11.81%) to close at Rs 40.70.

Separately Kelani Valley Plantations announced a first interim cash dividend of Rs. 2.50 per share.

New Casino legislation boosts JKH and Group stocks