Colombo stock market turnover hit 2-month high of over Rs. 2 b

The Colombo stock market succeeded another week of gain with Friday’s turnover hitting a two-month high.

During the week the ASPI and the S&P SL20 gained 0.74% and 0.30% respectively whilst recording an average daily turnover of Rs. 960 million, up from Rs. 703 million in the previous week.

Yesterday the market saw turnover hitting a two-month high of Rs. 2.2 billion. The active S&P SL20 gained by 0.8% and the benchmark ASPI by 0.6%.

Asia Securities said the market ended the week on a positive note with the ASPI closing in green for a second consecutive session on Friday on the back of price increases in SAMP (+2.4%), CFVF (+3.5%), LOFC (+4.1%), BIL (+3.9%), CALT (+1.8%), CICX (+1.1%), DIST (+3.2%), and VONE (+3.2%).

On the other hand, SLTL (-8.6%), LIOC (-1.7%), and NHL (-2.4%) closed lower during the session. VONE (+11 points) contributed the most to the ASPI, followed by SAMP (+11 points), and COMB (+8 points) while SLTL (-6 points) came in as the biggest laggard on the index. The breadth of the market was positive with 88 price gainers and 60 decliners.

More importantly, market turnover reached a two-month boost by off-board transactions in JKH, HAYL, and LFIN. Crossings accounted for 44.6% of turnover led by JKH (Rs. 469 million), HAYL (Rs. 329.4 million) and LFIN (Rs. 107 million).

Foreigners recorded a net outflow of Rs. 117.8 million. Net foreign buying topped in JKH at Rs. 35.1 million and selling topped in LFIN at Rs. 107.7 million.

First Capital said the market closed the week on a positive note at 8,818, gaining 51 points whilst displaying an overall uptrend during the day.

The positive sentiment was driven by the reduction in policy rates and the downward revision of deposit rates in the banking sector, which subsequently increased the interest in the equity counters. Treasury shares gained during the day owing to the dip in bill yields and following the announcement of First Capital Holdings’ divestment of 33% stake to People’s Leasing & Finance for a consideration of Rs. 4.95 billion.

NDB Securities said mixed interest was observed in Lanka IOC, Sampath Bank and Sri Lanka Telecom whilst retail interest was noted in LOLC Finance, Browns Investments and Blue Diamonds Jewellery Worldwide.

The Capital Goods sector was the top contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index gained 0.41%. The share price of John Keells Holdings increased by 25 cents to Rs. 140. The share price of Hayleys gained one Rupee to Rs. 71.10.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LB Finance) whilst the sector index edged down by 0.04%. The share price of LB Finance recorded a loss of 20 cents to Rs. 54.50.

Lanka IOC and Sampath Bank were also included among the top turnover contributors. The share price of Lanka IOC moved down by Rs. 2.25 to Rs 128. The share price of Sampath Bank appreciated by Rs. 1.20 to Rs. 50.20.