Sharp gain at Colombo stock market as ASPI reverts to 9,000-point level

The Colombo stock market yesterday gained sharply with the benchmark index reverting to 9,000-point level on the back of improved investor sentiment and activity. The All Share Price Index (ASPI) rose 2.23% or 196.44 points to close at 9,014.83 points. The active S&SP SL20 gained by 2.15%.

Turnover was Rs. 1.16 billion involving 82.3 million shares.

Asia Securities said the market commenced the week on a highly buoyant note with the ASPI breaching the psychological barrier of 9,000 and recording its biggest one-day gain in two months (+196 points or +2.2%).

Notably, a widespread positive investor sentiment was evident during the session, leading to a highly favourable market breadth with a significant margin of 142 price gainers outnumbering the 44 decliners. Front-line stocks EXPO (+1.2%), LOFC (+7.8%), LOLC (+6.4%), BIL (+7.5%), SCAP (+9.0%), and AAIC (+9.0%) scaled sizeable price gains driven by increased retail buying while banking stocks HNBN (+4.0%), HNBX (+7.0%), COMBN (+3.0%), DFCC (+5.0%), PABC (+8.8%), NDBN (+5.1%), SEYBX (+7.8%), UBC (+2.2%), and SAMP (+1.8%) saw significant upside movement during the session as investors anticipate positive outcomes from the ongoing negotiations related to domestic debt restructuring.

The top most contributors to the ASPI were VONE (+16 points), HNBN (+14 points), and COMBN (13 points).

Turnover was led by LOFC (Rs. 140 million), JKH (Rs. 90 million), and VFIN (Rs. R 88 million).

Asia also said foreigners recorded a net outflow of Rs. 249.1 million. Net foreign buying topped in BFL.N at Rs. 1 million and selling topped in VFIN at Rs. 85.4 million.

First Capital said the Bourse commenced the week on a positive note as the index closed at its one and half month high on the back of the exceptional contribution from the banking sector and index heavy shares.

The bullish performance enabled the index to surpass the 9,000 psychological barrier and close the day at 9,015 gaining 196 points.

Multiple crossings from mid-cap counters helped the turnover to surpass Rs. 1 billion whilst, revitalised investor interaction on the retail shares namely LOFC and BIL which collectively backed to record the highest number of trades in five and half weeks.

Moreover, after a long streak of consecutive gains primary dealer shares took a breather during yesterday’s session compared to the past few weeks.

NDB Securities said high net worth and institutional investor participation was noted in Vallibel Finance, Union Bank, and John Keells Holdings. Mixed interest was observed in LOLC Finance, CIC Holdings and Hayleys whilst retail interest was noted in Browns Investments, Softlogic Capital and Nation Lanka Finance.

Diversified Financials sector was the top contributor to the market turnover (due to LOLC Finance and Vallibel Finance) whilst the sector index gained 4.14%. The share price of LOLC Finance increased by 40 cents to Rs. 5.50. The share price of Vallibel Finance moved up by Rs. 1.60 to Rs. 32.

The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index increased by 1.52%.

The share price of Browns Investments recorded a gain of 40 cents to Rs. 5.70.

John Keells Holdings and Union Bank were also included among the top turnover contributors. The share price of John Keells Holdings gained 25 cents to Rs. 140.25. The share price of Union Bank appreciated by 20 cents to Rs. 9.20.