Saturday Sep 21, 2024
Saturday Sep 21, 2024
Friday, 3 September 2021 00:30 - - {{hitsCtrl.values.hits}}
The Colombo stock market’s relentless bull run persisted with more velocity yesterday with turnover topping Rs. 10 billion for the sixth consecutive day with sharp gains in indices.
The All Share Price Index gained by 173 points or 1.9% and the S&P SL20 shot up by 2% or 72 points. Turnover was Rs. 12 billion involving 462.5 million shares.
Yesterday’s robust performance proved pessimists, who earlier opined last week’s start of the bull run will lose momentum this week, wrong.
The year-to-date (YTD) gain of ASPI moved further to near 38% whilst S&P SL20 is catching up with near 33%. Whilst the ASPI is at an all-time high, the S&P SL20 is shy of 15 points to surpass 2021’s highest level.
Market capitalisation expanded further to cross the Rs. 4.16 trillion mark, now up 40.5% year to date. It added Rs. 77 billion yesterday to Rs. 416 billion increase in the previous eight sessions. As consistently highlighted by the Daily FT, foreign investor exodus persisted crossing billions in quick fashion. Heavy selling led to a net outflow of Rs. 856 million, increasing the YTD figure to Rs. 39.6 billion (around $ 200 million).
Wednesday’s net selling of Rs. 845 million took the YTD figure to over Rs. 38 billion.
HNB saw net foreign selling of Rs. 774 million yesterday on top of Rs. 675 million on Wednesday. However, its share price moved up by Rs. 2 (1.47%) to close at Rs. 138.25.
The most valued stock Expolanka Holdings, though it was subdued, sustained its number one position for the third consecutive day.
The share gained by 2.35% or Rs. 4.25 to close at Rs. 184.75 and a market capitalisation of Rs. 361.17 billion. Expo saw 13 million of its shares changing hands via 6,121 trades for Rs. 2.4 billion.
LOLC gained by 3% or Rs. 18 to close at Rs. 628 with a market capitalisation of Rs. 298.4 billion. Former number one, but less sought-after of late, JKH continued its gradual gain up Rs. 2.25 or 1.7% to Rs. 133.25 whilst its market capitalisation was Rs. 175.85 billion.
First Capital said the bourse ended firmly in the green, extending the bullish run for the third straight day while recording an above Rs. 10 billion turnover for the sixth straight session.
“Index opened strong and continued to upsurge throughout the session amid significant investor enthusiasm, reaching an intraday high of 9,360, before moving sideways and closing at 9,336,” First Capital added.
It said turnover was supported by high retail participation. The Capital Goods sector dominated turnover, followed by the Food, Beverage and Tobacco sector collectively accounting for a total contribution of 49%.
Asia Securities said the ASPI continued surging to record high levels, led by a range of large-cap stocks which witnessed sharp gains during the session, while the more liquid S&P SL20 index closed above the 3,500 level for the first time since 29 January.
“In line with the ongoing buoyant momentum market breadth remained positive with price gainers outnumbering decliners by a wide margin of 137 to 54 while turnover remained robust exceeding Rs. 10 billion for the sixth consecutive session,” Asia said.
“The ASPI once again commenced trading strongly, breaching the 9,200 level and continued moving upwards throughout the session on the back of heavy buying support extended by investors which eventually prompted the index to close above the 9,300 level,” Asia said.
It said unlike previous sessions, the ASPI performance was supported by a broad-based pickup across stocks mainly with stocks such as LOLC, CLC, VONE, EXPO, and MELS recording sharp gains during the session. EXPO spearheaded activity generating 20.0% of turnover on strong HNI and retail participation, Asia said.
NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Holdings, Expolanka Holdings and Vallibel One.
It said high net worth and institutional investor participation was noted in Hatton National Bank, Hayleys and Windforce. Mixed interest was observed in Expolanka Holdings, Vallibel One and Royal Ceramics, whilst retail interest was noted in Browns Investments, Sierra Cables and Agstar.
The Capital Goods sector was the top contributor to the market turnover (due to Vallibel One and Royal Ceramics), whilst the sector index gained 3.21%. The share price of Vallibel One recorded a gain of Rs. 7 (11.15%) to close at Rs. 69.80. The share price of Royal Ceramics appreciated by Rs. 2.90 (6.43%) to close at Rs. 48.
The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments), whilst the sector index increased by 1.09%. The share price of Browns Investments gained 10 cents (0.87%) to close at Rs. 11.60.
