Fresh buying boosts Colombo bourse

Fresh rounds of buying at the beginning of the week boosted the Colombo stock market yesterday with both indices up over 1% whilst turnover was strong along with net foreign inflow.

The active S&P SL20 gained by 1.5% and the benchmark ASPI by 1.25%. Turnover was Rs. 3.1 billion involving 130 million shares.

The gain yesterday was welcome as the market last week closed with losses ending multiple weeks of gains.

Asia Securities said the market commenced the week on a positive note with both the indices recording a gain of more than 1.0%, boosted by EXPO (+6.7%) and LOLC (+5.2%). 

Turnover remained at healthy levels, led by EXPO (Rs. 596 million), LIOC (Rs. 328 million), and AGST (Rs. 187 million). Earlier, the ASPI crossed the 9,100 level with a 138-point gap-up and witnessed a small pullback to 9,040 (+64 points) in the first hour of trading. Thereupon, the index regained momentum and moved upwards to close at 9,088 (112 points). 

EXPO ended as the biggest index mover, contributing 27 points to the ASPI, followed by LOLC (+17 points) and SPEN (+11 points). Notably, AGST recorded a sharp gain of 16.5% during the session. The breadth of the market remained positive with 124 price gainers and 82 decliners.

Asia also said foreigners recorded a net inflow of Rs. 66.4 million while their participation increased to 3.5% of turnover (previous day 2.2%). Net foreign buying topped in EXPO at Rs. 99.2 million and selling topped in MELS at Rs. 40 million.

First Capital said the bourse witnessed gains for the third consecutive session while the ASPI crossed the 9,000 psychological level for the second time during the month fuelled by active retail participation. 

The ASPI thrived in green with significant buying in the hotel sector led by expectations on recovering tourist arrivals. Index moved negatively shortly in to the market opening but eventually recouped strongly and upheld the positive momentum as investors continued their buying spree and closed for the day at 9,088 gaining 112 points. 

Retail favourite EXPO displayed an upswing owing to the buying of shares by SG Holdings last week while LIOC witnessed profit taking. The Food, Beverage and Tobacco sector along with the Transportation sector dominated the turnover by a joint contribution of 39%. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings and Melstacorp. Mixed interest was observed in Expolanka Holdings, Lanka IOC and Hayleys Fabric whilst retail interest was noted in Agstar, Browns Investments and Prime Lands Residencies.

Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Lankem Developments) whilst the sector index gained 0.17%. The share price of Lankem Developments appreciated by Rs. 1.30 (5.33%) to close at Rs. 25.70.

Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index increased by 6.68%. The share price of Expolanka Holdings increased by Rs. 14.50 (6.69%) to close at Rs. 231.25.

Lanka IOC, Agstar and Hayleys Fabric were also included amongst the top turnover contributors. The share price of Lanka IOC lost Rs. 3 (1.66%) to close at Rs. 178.25. The share price of Agstar moved up by Rs. 2 (16.53%) to close at Rs. 14.10. The share price of Hayleys Fabric recorded a gain of 50 cents to close at Rs. 40.80.