Colombo stock market upbeat ahead of crucial Parliamentary vote

The Colombo stock market remained upbeat yesterday ahead of a crucial Parliamentary vote to elect a new President today.

Both indices gained by 1.5% whilst turnover remained over Rs. 1 billion for the third consecutive session. Number of shares traded was 66.8 million. Asia Securities said the indices closed higher for the third consecutive session as positive momentum on the Exchange continued on the back of key developments on the political front.

It said gain in indices was supported by price gains in front-line stocks EXPO (+0.7%), BIL (+1.3%), LIOC (+1.3%), LOLC (+0.7%), AAIC (+7.3%), and SAMP (+2.2%). Turnover was led by EXPO (Rs. 138 million), MELS (Rs. 118 million), and LIOC (Rs. 116 million). The breadth of the market ended strong with 127 price gainers and 42 decliners.

Asia also said foreigners recorded a net inflow of Rs. 5.6 million while their participation picked up to

12.2% of turnover (previous day 5.5%). Net foreign buying topped in COMB.N at Rs. 10.4 million and selling topped in TJL at Rs. 3 million.

First Capital said the Bourse rallied for the third straight day after Sajith Premadasa withdrew from President candidacy and lent support to MP Alahapperuma who is in the fray for the presidential election. In response to that, investor sentiment improved while expecting stability on the political front. As a result, bulls continued to dominate the session. The Food, Beverage and Tobacco sector solely contributed 41% to the turnover which includes the off-board transaction of MELS (10%).

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp. Mixed interest was observed in Expolanka Holdings, Lanka IOC and Hayleys whilst retail interest was noted in Browns Investments, Kotagala Plantations and ACME Printing & Packaging (rights).

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Melstacorp and Browns Investments) whilst the sector index gained 2%. The share price of Melstacorp gained 60 cents (1.57%) to close at Rs. 38.80. The share price of Browns Investments recorded a gain of 10 cents (1.25%) to close at Rs. 8.10.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index increased by 0.71%. The share price of Expolanka Holdings increased by Rs. 1.25 (0.70%) to close at Rs. 180. Lanka IOC and Hayleys were also included among the top turnover contributors. The share price of Lanka IOC moved up by Rs. 1(1.31%) to close at Rs. 77.10. The share price of Hayleys appreciated by Rs. 1.10 (1.58%) to close at Rs. 70.70.