Stock market gets AKD spirit; records highest day gain in 2024

In an apparent show of growing confidence in new President Anura Kumara Dissanayake, the Colombo stock market yesterday shot up to record its largest daily gain for the year amidst high turnover including net foreign inflow.

The benchmark ASPI jumped by 237.31 points or 2.14% and the active S&P SL20 by 2.36% or 75 points. Turnover was Rs. 2 billion involving 96 million shares.

First Capital said the Colombo Bourse witnessed sustained bullish momentum during the trading session driven by easing political uncertainties and improved confidence from retail investments. The ASPI surged to 11,334, gaining 237 points and achieving year-to-date highest intraday gain. Moreover, almost every sector witnessed price gains across the board whilst COMB, MELS, LOLC, HNB and CCS emerged as the top positive contributors to the index. Additionally, CCS experienced a 10.2% price increase during the session.

Despite the muted participation of the HNW investors, turnover surged to nearly two months high marking a 97.4% increase from the monthly average. The Banking sector solely contributed 38% to the overall turnover whilst the Capital Goods and Food, Beverage and Tobacco sectors jointly contributed 34% to the total turnover. Foreign investors remained net sellers, with a net outflow of Rs. 69 million.

NDB Securities said indices closed in green as a result of price gains in counters such as Commercial Bank, Melstacorp and LOLC Holdings.

High net worth and institutional investor participation was noted in Access Engineering, Sampath Bank and Hemas Holdings. Mixed interest was observed in Commercial Bank, Hatton National Bank and John Keells Holdings whilst retail interest was noted in SMB Leasing, Browns Investments and Marawila Resorts.

The Banking sector was the top contributor to the market turnover (due to Commercial Bank, Hatton National Bank and Sampath Bank) whilst the sector index gained 2.16%. The share price of Commercial Bank increased by Rs. 3.10 to Rs. 94. The share price of Hatton National Bank gained Rs. 3.25 to Rs. 177.50. The share price of Sampath Bank appreciated by one Rupee to Rs. 75.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Access Engineering) whilst the sector index increased by 1.30%. The share price of John Keells Holdings moved up by 50 cents to Rs. 169. The share price of Access Engineering recorded a gain of 40 cents to Rs. 21.40.