Mini-bull run at bourse ends after investors lose steam

The mini-rally at the Colombo stock market came to an end yesterday as temporary bullish investors rushed to book profits.

After sharp gains in early morning trading, both indices lost steam and closed on a mixed note. Turnover was robust at Rs. 3.26 billion involving 108 million shares. Foreigners were net buyers as well. On Tuesday, the benchmark ASPI rose to a five month after a 2% gain.



Asia Securities said the indices closed mixed after a positive first half as investors booked profits in SAMP (-1.9%), LIOC (-1.8%), VONE (-1.0%), SUN (-1.6%), COMBX (-1.3%), and AEL (-1.4%). However, HNBN (+5.7%), HNBX (+1.2%), VFIN (+10.1%), DIAL (+10.1%), TKYON (+4.9%), TKYOX (+2.6%), and PARQ (+4.6%) closed higher on active domestic buying.

The ASPI initially touched a high of 9,771 (+128 points) at market open, however reversed course subsequently and closed at 9,648 (+5 points). HNB (+19 points) and DIAL (+13 points) came in as the biggest index movers while SAMP (-10 points), LOLC (-6 points), and RICH (-5 points) ended as the major laggards on the ASPI. Overall, 82 stocks closed with price gains while 109 settled with losses.

Turnover was led by HNB (Rs. 541 million), HAYL (Rs. 424 million), and JKH (Rs. 171 million). Off-board transactions accounted for 19.5% of turnover on crossings in HAYL (Rs. 309.6 million), HNBN (Rs. 253.8 million), EXPO (Rs. 30 million), LFIN (Rs. 22.4 million), and MGT (Rs. 20.6 million).

Asia also said foreigners recorded a net inflow of Rs. 20 million. Net foreign buying topped in JKH at Rs. 50 million and selling topped in VFIN at Rs. 32.6 million.

First Capital said after the significant gain recorded during the past four sessions (up by 454 points), ASPI closed the day flat as profit-taking emerged during the day mainly on SAMP and index heavyweights, while retailers remained on the sidelines awaiting for a clear direction on the interest rates from the weekly bill auction.

It said the Index rallied with a substantial gain reaching an intraday high of 9,774 during the early hours of trading. However, selling pressure emerged by mid-day, which wiped off most of the gains as retailers chose to book profits and adopt a cautious stance after the index breached the psychological barrier of 9,700. Accordingly, the index closed the day flat at 9,648, gaining 5 points. High net worth and Institutional investors’ participation continued on Blue chip companies and Banks with the expectation on the IMF board level agreement to be inked by March 2023, First Capital added.

NDB Securities said high net worth and institutional investor participation was noted in Hayleys, Hatton National Bank and Expolanka Holdings. Mixed interest was observed in John Keells Holdings, Capital Alliance and Sampath Bank whilst retail interest was noted in Browns Investments, LOLC Finance and Sierra Cables.

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys and John Keells Holdings) whilst the sector index edged down by 0.09%. The share price of Hayleys gained by 40 cents to Rs. 77.40. The share price of John Keells Holdings inched up 25 cents to Rs. 140.25.

The Banking sector was the second highest contributor to the market turnover (due to Hatton National Bank) whilst the sector index increased by 0.33%. The share price of Hatton National Bank increased by Rs. 7.25 (5.68%) to Rs. 135.

Expolanka Holdings and Capital Alliance were also included amongst the top turnover contributors. The share price of Expolanka Holdings recorded a gain of Rs. 1.25 (0.84%) to Rs. 150.75. The share price of Capital Alliance appreciated by Rs. 1.90 (5.59%) to Rs. 35.90.

Separately Lanka Tiles announced a first interim cash dividend of Rs. 6.50 per share.