Stock market gathers more momentum with rising turnover

• Retailer and HNWI sentiment improves
• Expolanka remains sought after; share price now up to Rs. 24; draws Rs. 32 m of net foreign buying
• YTD net foreign outflow tops Rs. 46 b

The Colombo stock market gathered more momentum yesterday with both indices up 1% but more importantly high turnover of Rs. 3.5 billion thanks to strong retail interest.

The ASPI gained by over 62 points or 1%  and S&P SL20 Index by an equal percentage or 23 points.

For the second day running, Expolanka contributed topped the list of contributors to ASPI’s gain followed by JKH, HNB Finance, LOLC and Nestle.

First Capital said: “Heavy retail optimism in Mid-Cap counters sustained the drive in the positive direction for the second consecutive session while recording a two-and-a-half week high turnover.” 

It said transportation sector counters led the Rs. 3 billion plus turnover closely followed by Materials sector making a joint contribution of 46%. Moreover the parcel trades boosted the turnover for the session amounting to 13%. 

Asia Securities also said the market gained momentum with turnover reaching levels last seen two weeks ago on retail and HNI participation. 

“Retail investors were again active in small cap stocks, however mid cap stocks were the largest contributors to turnover supported by expectations of strong corporate earnings,” Asia added.

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings and Cargills (Ceylon). Mixed interest was observed in Expolanka Holdings, Vallibel Power Erathna and Dipped Products, whilst retail interest was noted in Piramal Glass, R I L Property and Hayleys Fabric. 

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings), whilst the sector index gained 7.60%. The share price of Expolanka Holdings increased by Rs. 1.70 (7.62%) closing at Rs. 24.00 whilst foreign holdings increased by 1,330,268 shares. 

Materials sector was the second highest contributor to the market turnover (due to Piramal Glass and Dipped Products), whilst the sector index increased by 2.31%. The share price of Piramal Glass moved up by Rs. 0.10 (1.19%) to close at Rs. 8.50. The share price of Dipped Products recorded a gain of Rs. 5.50 (1.70%) to close at Rs. 328.50. Vallibel Power Erathna and R I L Property were also included amongst the top turnover contributors. 

Furthermore, the share price of Vallibel Power Erathna gained Rs. 0.50 (6.41%) to close at Rs. 8.30, whilst the share price of R I L Property appreciated by Rs. 0.70 (8.43%) to close at Rs. 9.00.

The Colombo Bourse’s longstanding handicap foreign net selling crossed Rs.. 46 billion mark year to date with the addition of Rs.. 303 million yesterday.