Positive start at stock market; foreigners step up buying

• Rs. 360 m net foreign inflow so far in July with Rs. 123 m yesterday

The Colombo stock market began the politically crucial week on a positive note as overall investor activity improved with foreigners stepping up buying. 

Both indices gained by nearly 1% with turnover of Rs. 1.4 billion involving 65 million shares. 

Net foreign buying amounted to a six week high of Rs. 123 million with JKH accounting for Rs. 122 million. So far in July, there has been net inflow of 

Rs. 360 million.

Asia Securities said the market commenced the week on a positive footing with the ASPI rising 69 points (+0.9%) and the S&P SL20 index increasing 23 points (+1.0%), underpinned by price gains in LIOC (+3.8%), HAYL (+3.3%), LOLC (+2.0%) and SAMP (+1.9%).

Turnover was led by HAYL (Rs. 357 million), BIL (Rs. 171 million), LIOC (Rs. 155 million) and EXPO (Rs. 137 million). Asia also said following a 44-point gap-up, the ASPI continued its upward trajectory and touched an intra-day high of 7,552 (+84 points | 1.1%) in the first hour of trading. 

Afterwards, the indices witnessed consolidation and moved in the range of 7,510-7,540 for the rest of the session. Overall, 116 stocks recorded price gains during the session while 57 settled with losses.

First Capital said the Bourse saw gains for the second consecutive session as investors displayed an optimistic sentiment over key developments that are likely to impact Sri Lanka in the week ahead. Impending Parliament ballot to elect a new President on Wednesday, expected fuel shipments towards the mid of the week and introduction of fuel quota under a pass system were key developments that added positivity to the market sentiment. 

Turnover was a two-week high which was 74.9% above the weekly average turnover of Rs. 808.7 million. First Capital said the Index opened on a sharp uptrend and moved on an upward trajectory and peaked to an intraday high of 7,554. Subsequently, the index slightly edged down but held positively before closing for the day at 7,537 gaining 69 points. Turnover was led by a joint contribution of 64% from the Capital Goods sector and Food, Beverage and Tobacco sector. 

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

The Capital Goods sector was the top contributor to the market turnover (due to Hayleys and John Keells Holdings) whilst the sector index gained 0.82%. The share price of Hayleys increased by Rs. 2.20 (3.26%) to close at Rs. 69.60. The share price of John Keells Holdings closed flat at Rs. 122.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 0.34%.

The share price of Browns Investments gained 10 cents to close at Rs. 8. Lanka IOC and Expolanka Holdings were also included among the top turnover contributors. The share price of Lanka IOC moved up by Rs. 2.80 (3.82%) to close at Rs. 76.10. The share price of Expolanka Holdings recorded a gain of 50 cents (0.28%) to close at Rs. 178.75.