Stock market marks gain for 10th consecutive month

• ASPI ends January up 6.4% and S&PSL20 higher by 3.8%
• Opens fresh week positively after multiple days of losses

After multiple days of losses the Colombo stock market managed to remain resilient yesterday, thereby finishing the first month of 2022 on a positive note.

On an erratic day of investor sentiments, the All Share Price Index closed on the up by over 146 points, or 1.14%, and the S&PSL20 gained by 0.35%, or over 15 points. Turnover was a healthy Rs. 7 billion involving over 317 million shares.

Asia Securities said that, on a monthly basis, the ASPI stayed positive for the 10th consecutive month gaining 783.49 points (+6.41%) while the S&P SL20 index ended higher for the seventh straight month with a gain of 164.32 points (+3.88%).

It said that following four consecutive sessions of losses, the indices returned to positive territory on Monday (31) with the ASPI regaining the 13,000 level, recording its biggest single-day gain (146 points) in two weeks, boosted by sharp price gains in Softlogic group stocks SCAP (+37.6%), CRL (+29.0%), SHL (+24.2%) and AAIC (+21.7%).

“The breadth of the market also turned positive with price gainers outnumbering decliners by a wide margin of 141 to 81,” Asia said.

It said the ASPI commenced the session with a gap-up of 136 points at 12,998, however it gradually declined to an intra-day low of 12,904 within the first hour of trading. Thereupon, the index resumed its upward trajectory and touched an intra-day high of 13,047 (+184 points) in mid-afternoon trade before closing at 13,010 (+146 points).

Notable price declines were recorded by EXPO (-3.0%), BIL (-1.3%) and CLC (-2.0%), however a pickup in momentum following a subdued week supported the indices to keep market sentiments buoyed. Turnover was led by SCAP (Rs. 1 billion) AAIC (Rs. 1 billion) and EXPO (Rs. 792 million).

Asia also said foreigners recorded a net outflow of Rs. 203 million while their participation marginally increased to 2.7% of turnover (previous day 2.3%). Net foreign buying topped in DIAL at Rs. 22 million and selling topped in EXPO at Rs. 95 million.

First Capital said the bourse closed in the green territory after back to back losses in the previous four sessions with an intraday gain amounting to a two-and-a-half week high, stirring the ASPI to bounce back to the 13,000 psychological level marginally.

“The Index shot up as soon as the market opened followed by a slight downfall. Subsequently the index recouped over mid-day as investors rallied on a bargain hunt with the index reaching an intraday high of 13,050. However, during the final hour of the session index scaled down slightly but managed to hold a positive momentum and closed for the day at 13,010,” First Capital said, adding that turnover was led by a joint contribution of 50% from the Insurance sector and Capital Goods sector.

NDB Securities said the ASPI closed in green as a result of price gains in counters such as LOLC Holdings, Softlogic Holdings and Softlogic Life Insurance.

It said high net worth and institutional investor participation was noted in John Keells Holdings, Lanka IOC and Access Engineering. Mixed interest was observed in Expolanka Holdings, Softlogic Holdings and LOLC Holdings, whilst retail interest was noted in Softlogic Capital, SMB Leasing voting & nonvoting and Browns Investments.

The Insurance sector was the top contributor to the market turnover (due to Softlogic Life Insurance), whilst the sector index gained 6.99%. The share price of Softlogic Life Insurance gained Rs. 38.75 (21.71%) to close at Rs. 217.25.

The Capital Goods sector was the second highest contributor to the market turnover (due to Softlogic Holdings), whilst the sector index increased by 1.40%. The share price of Softlogic Holdings recorded a gain of Rs. 14.30 (24.20%) to close at Rs. 73.40.

Softlogic Capital, Expolanka Holdings and Browns Investments were also included amongst the top turnover contributors. The share price of Softlogic Capital increased by Rs. 5.30 (37.59%) to close at Rs. 19.40. The share price of Expolanka Holdings moved down by Rs. 11 (3.01%) to close at Rs. 355. The share price of Browns Investments declined by 20 cents (1.27%) to close at Rs. 15.50.