Stock market notches highest ever day gain as battered investors see silver lining

• S&P SL20 jumps by 8.5%, ASPI by 7%
• Market recoups Rs. 410 b out of Rs. 676 b value lost in the first three days of the week
• Foreigners remain bullish as net buyers for 6th consecutive day

The Colombo stock market yesterday staged a dramatic and welcome recovery producing by far the biggest ever day-gains as previously battered investors showed signs of positivism amidst macro-economic uncertainty.

The more active S&P SL20 jumped by 8.5% or 293 points and the benchmark ASPI gained by nearly 7% or 692 points.

Turnover however was only Rs. 3.57 billion involving 122 million shares as what some analysts described it as day of thin trading though rebound in sentiment.

Asia Securities said staging a strong rebound, the indices ended the session on a buoyant note posting historic record gains boosted by a broad-based pickup on the back of renewed retail and HNI buying. The ASPI ended at 10,856 with a sharp gain of 692 points (+6.8%) while the S&P SL20 index surged 293 points (+8.5%) to close at 3,731. 

Among the price gainers, HAYL (+13.8%), BIL (+17.5%), LOFC (+31.0%), LOLC (+10.2%), RCL (+13.6%), CLC (+24.7%) and AAIC (+20.2%) gained some footing following the recent shift in the momentum while stocks with sizeable export exposure such as EXPO (+19.6%), MGT (+10.1%), TJL (+7.4%), HAYC (+7.8%), DIPD (+5.6%) and REXP (+10.2%) also saw a strong session as retail and HNI investors resorted to positioning themselves in dollar earning counters following the Central Bank’s decision to float the local currency this week. 

Turnover was led by EXPO (Rs. 1,340 million) and BIL (Rs. 473 million). 

Asia also said net foreign inflow continued for the sixth straight session (Rs. 21 million). Overall, market breadth ended strong with gainers outnumbering decliners by a wide margin of 207 to 25.

First Capital said the Bourse recouped 64.1% of the loss during the week in yesterday’s session while hitting a new milestone of recording the highest intraday gain of 692 points. Along with that, the S&PSL20 index also thrived into the green zone while gaining 325 points. 

“As the CBSL decided to free float the currency, the majority of the dollar earning companies gained significantly with the higher investor confidence. Although turnover and retail participation maintained at a lower level, the market positively closed the session at 10,856, gaining 692 points,” First Capital said adding turnover was led by the transportation sector accounting for a sole contribution of 37%. 

NDB Securities said high net worth and institutional investor participation was noted in Hayleys, Sunshine Holdings and ACL Cables. Mixed interest was observed in Expolanka Holdings, LOLC Holdings and Royal Ceramics whilst retail interest was noted in Browns Investments, Lanka Orix Finance and SMB Leasing nonvoting. 

The transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 19.51%. The share price of Expolanka Holdings increased by Rs. 47 (19.56%) to close at Rs. 287.25.

The Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments) whilst the sector index edged up by 7.30%. The share price of Browns Investments gained Rs. 1.70 (17.53%) to close at Rs. 11.40.

Lanka Orix Finance, LOLC Holdings and Royal Ceramics were also included amongst the top turnover contributors. The share price of Lanka Orix Finance moved up by Rs. 4.40 (30.99%) to close at Rs. 18.60. The share price of LOLC Holdings recorded a gain of Rs. 81.00 (10.18%) to close at Rs. 876.75. The share price of Royal Ceramics appreciated by Rs. 6.60 (13.61%) to close at Rs. 55.10.