• Indices gain 3%, turnover near Rs. 11 b
• Net foreign outflow crosses Rs. 37 b YTD

The Colombo stock market rose to new heights as bullish local investors stormed, propelling indices and turnover. 

The All Share Price Index shot up by nearly 3%, or 249 points, and S&PSL20 gained also by 3%, or 96 points. Turnover was a majestic Rs. 10.8 billion involving 399 million shares. Net foreign outflow aggravated further since YTD crossed the Rs. 37 billion mark. On Friday net outflow was Rs. 374 million, while yesterday it was lower at Rs. 15 million.

First Capital said the bourse jumped back to the green zone, ending the day with robust gains while surpassing the previous index and turnover high recorded six months and three weeks ago. 

“The index remained bullish throughout the session as optimistic investors continued their buying spree, closing at 8,480, gaining 240 points,” First Capital added. 

It said the turnover was led by the Transportation sector, followed by the Capital Goods sector, collectively accounting for a total contribution of 53%. 

Asia Securities said that, following a volatile week, the indices commenced trading on a strong note today and continued its upward momentum throughout the session as investors resumed their buying spree despite the onset of the 10-day lockdown. 

It said with a firm decision on the lockdowns ending the speculation over the past week, investors were seen taking positions in lucrative stocks. 

“After breaching the 8,300 level with a 98-point gap up, the ASPI held firm to surpass the 8,400 level and closed at a six-month high as a result of extended buying interest shown by HNI and retail investors. Both key indices recorded their highest single-day gains in five months, spearheaded by EXPO which contributed 98 points to the ASPI, and is now up 141% since 9 July,” Asia said. 

It said the stock recorded a daily gain of 22.1% and became the most valuable company on the exchange holding the highest market capitalisation at Rs. 240 billion. 

NDB Securities said the ASPI closed in green as a result of price gains in counters such as Expolanka Holdings, Commercial Leasing & Finance and LOLC Holdings.

It said high net worth and institutional investor participation was noted in BPPL Holdings, Sanasa Development Bank and Hatton National Bank non-voting. Mixed interest was observed in LOLC Holdings, Royal Ceramics and Hayleys Fabric, while retail interest was noted in Browns Investments, SMB Leasing non-voting and Expolanka Holdings. Foreign participation in the market activity remained at subdued levels with foreigners closing as net sellers.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) while the sector index gained 22.11%. The share price of Expolanka Holdings increased by Rs. 22.25 (22.14%) closing at Rs. 122.75, while foreign holdings decreased by 209,690 shares.

The Capital Goods sector was the second highest contributor to the market turnover (due to Royal Ceramics) while the sector index increased by 3.29%. The share price of Royal Ceramics recorded a gain of Rs. 3.80 (9.84%) to close at Rs. 42.40.

Browns Investments, LOLC Holdings and Hayleys Fabric were also included among the top turnover contributors. The share price of Browns Investments gained Rs. 0.50 (7.14%) to close at Rs. 7.50. The share price of LOLC Holdings moved up by Rs. 32.50 (7.08%) to close at Rs. 491.50. The share price of Hayleys Fabric appreciated by Rs. 2.50 (7.76%) to close at Rs. 34.70.

Separately Elpitiya Plantations and Aitken Spence Plantation Managements announced their first and final dividends of Rs. 2 and Rs. 8 per share respectively. Harischandra Mills announced a final dividend of Rs. 30 per share.

Expolanka edges out LOLC as most valuable

LOLC now owns 15% of SANASA Development Bank