Stock market on a high

• ASPI crosses historic 13,000 points mark; turnover tops Rs. 15 b due to strategic deals and retail rally

The Colombo stock market was on a high yesterday with both indices gaining by over 2% and turnover hitting a new record due to strategic deals and retail play.

The All Share Price Index gained by over 276 points, or 2.16%, and S&PSL20 gained by 103 points, or 2.36%. Turnover was Rs. 15.5 billion involving 951.5 million shares.

Asia Securities said the ASPI surged past the historic 13,000 milestone while the S&P SL20 index crossed the 4,400 mark on the back of price gains in LOLC, EXPO, BIL and BRWN. Turnover surpassed Rs. 15 billion supported by strong buying extended by retail and HNI investors across sectors.

 Moreover, Browns Investments PLC acquisitions of Sierra Cables PLC (Rs. 1,792 million – consisting of 29.50% of outstanding number of shares) and Agstar PLC (Rs. 1,123 million – consisting of 43.75% of Voting shares and 66.66% of Non-Voting shares) pushed turnover to reach a four-month high at Rs. 15,561 million.

“After a buoyant start to the session, the ASPI moved upwards till mid-afternoon trade and touched a record intra-day high at 13,252 (+451 points). Thereupon, the index witnessed a short-lived pullback in the second half of the session as investors opted to book quick profits at recent higher levels in selected heavyweight counters. However, both benchmark indices ended the session with positive bias recording a gain of more than 2% each. Overall, 124 stocks ended higher while 113 settled with losses,” Asia said.

It said foreigners recorded a net inflow of Rs. 21.2 million while their participation declined to 1.8% of turnover (previous day 3.8%). Net foreign buying topped in EXPO at Rs. 89 million while net foreign selling topped in JKH at Rs. 75.8 million. 

First Capital said the bourse closed in the green zone after a bullish session as the ASPI surpassed the 13,000 psychological level while recording a robust turnover which was at a four-month high. 

“The Index opened on an upsurge and continued to remain high with significant retail participation and reached an intraday high of 13,255. However, towards the latter part of the session index witnessed a slight downturn but recouped and closed for the day at 13,077 gaining 276 points. LOLC and EXPO contributed largely to the ASPI hike. Turnover was led by a joint contribution of 47% from the Capital Goods sector and the Food, Beverage & Tobacco sector,” First Capital added. 

NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, Teejay Lanka and Softlogic Capital. Mixed interest was observed in Expolanka Holdings, Lanka Orix Finance and LOLC Holdings, whilst retail interest was noted in Sierra Cables, Agstar and Browns Investments. 

The Capital Goods sector was the top contributor to the market turnover (due to Sierra Cables), whilst the sector index increased by 0.45%. The share price of Sierra Cables decreased by Rs. 3.50 (23.33%) to close at Rs. 11.50. The Food, Beverage & Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments), whilst the sector index increased by 2.98%. The share price of Browns Investments gained Rs. 1.40 (8.14%) to close at Rs. 18.60. Agstar, Expolanka Holdings and Lanka Orix Finance were also included amongst the top turnover contributors. The share price of Agstar moved down by Rs. 2.50 (23.81%) to close at Rs. 8. The share price of Expolanka Holdings recorded a gain of Rs. 14.25 (3.73%) to close at Rs. 396.50. The share price of Lanka Orix Finance declined by Rs. 1.40 (4.64%) to close at Rs. 28.80.