Stock market gathers more strength

The Colombo stock market sustained its resilience for a week yesterday as both indices closed positive with nearly Rs. 10 billion turnover.

The All Share Price Index closed up over 92 points or 0.7% (lowest hike in recent days) and the S&P SL20 improved by 35 points or 0.78%. Turnover in comparison to Wednesday was lower at Rs. 9.4 billion involving 419 million shares.

Asia Securities said after witnessing an initial downfall, the indices rebounded sharply with the ASPI comfortably exceeding the 13,100 level on the back of strong broad-based buying extended by local investors. While EXPO, LOFC and BIL continued driving market activity, improved retail and HNI buying was witnessed in other large-cap stocks such as SUN, HAYL, RCL and VONE. 

Asia said triggered by the acquisition deals executed by BIL on Wednesday, prices of AGST and SIRA surged during the session. The stocks recorded a gain of 42.5% and 39.1%, respectively at market close while COCR, SHL and MBSL also surged more than twenty percent during the session. 

“Earlier, the ASPI commenced the session with a sharp gap up of 143 points, however slipped into negative territory and reached an intra-day low of 13,055 (-22 points) in the first hour of trading due to price declines in momentum-driven stocks CLC, SFCL and NIFL,” Asia said. 

“As robust retail and HNI buying across sectors outweighed the negative momentum shown by volatile stocks, the ASPI bounced back strongly, recouping all of its early losses and eventually wrapped up the session at a record closing high at 13,169 (+92 points). The breadth of the market remained positive with 125 price gainers and 99 decliners,” it added. 

Asia also said foreigners recorded a net outflow of Rs. 111.7 million while their participation remained flat at 1.5% of turnover (previous day 1.8%). Net foreign buying topped in HAYL at Rs. 20.7 million while net foreign selling topped in SHL at Rs. 46 million.

First Capital said the bourse continued to thrive in the green zone for the seventh consecutive session continuing the new year buying spree while recording a healthy turnover. 

“The Index moved with sizable volatility during the initial half hour of the session hitting an intraday low of 13,050. Gradually the index climbed up and displayed a sideways drift through the rest of the session and closed for the day at 13,169,” First Capital said, adding SHL and LOLC were the major contributors to the ASPI. 

It said turnover was led by a joint contribution of 50% from the Diversified Financials sector and Food, Beverage and Tobacco sector. 

NDB Securities said high net worth and institutional investor participation was noted in LVL Energy Fund, Windforce and Brown and Company. Mixed interest was observed in Sunshine Holdings, Hayleys and Expolanka Holdings, whilst retail interest was noted in Browns Investments, Lanka Orix Finance and Industrial Asphalts. 

Diversified Financials sector was the top contributor to the market turnover (due to Lanka Orix Finance) whilst the sector index gained 0.74%. The share price of Lanka Orix Finance increased by 50 cents (1.74%) to close at Rs. 29.30.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments and Sunshine Holdings), whilst the sector index increased by 1.13%. The share price of Browns Investments closed flat at Rs. 18.60. The share price of Sunshine Holdings moved up by Rs. 8.40 (14.07%) to close at Rs. 68.10.

Hayleys and Expolanka Holdings were also included amongst the top turnover contributors. The share price of Hayleys recorded a gain of Rs. 6.25 (4.58%) to close at Rs. 142.75. The share price of Expolanka Holdings appreciated by Rs. 2.00 (0.50%) to close at Rs. 398.50.