Stock market on a roll; enjoys highest single day gain after 14 months

• ASPI up by over 1,000 points in seven days; turnover soars to Rs. 4 b as investors turn bullish under new regime of President AKD

 The Colombo stock market yesterday rose to new heights as investors stepped up their bullish sentiment under the new regime of President Anura Kumara Dissanayake.

The benchmark ASPI shot up 326 points, highest day gain in 14 months or 2.87% to a two-month high. Over the past seven market days, the ASPI has gained by over 1,000 points. The active S&P SL20 by 4% or 132 points. Turnover was Rs. 4 billion involving 151 million shares.

Capital Trust said the surge highlights renewed investor confidence and momentum, signalling a potential turnaround in market sentiment.

Asia Securities said building on the strong momentum from the previous session, the ASPI surge was primarily led by banks and heavyweight counters. 

Notable price increases in PABC (+8.4%), HNBN (+7.2%), COMBN (+6.0%), and NTBN (+3.4%) were recorded during the session. Moreover, LIOC (+8.9%), LOFC (+8.8%), BIL (+7.3%), and VONE (+5.1%) closed in green, leading to a broad-based rally during the session. 

HNBN (+40 points), and COMBN (+35 points) came in as the major index movers for the day. The market breadth was positive with 184 price gainers and 31 decliners.

Turnover was led by off-board transactions in COMBN (Rs. 193 million), HNBN (Rs. 171 million), SAMP (Rs. 145 million), and CARS (Rs. 94 million). 

Banks, Capital Goods, Food, Beverage & Tobacco and Diversified Financials sectors led activity, collectively accounting for 83.0% of turnover.

Foreigners recorded a net inflow of Rs. 82.1 million. Net foreign buying topped in SAMP.N at Rs. 96.9 million and selling topped in CIC.N at Rs. 31.5 million. 

First Capital said the broad market sustained the bullish trend for the seventh consecutive session, buoyed by improved sentiment among investors after the Presidential election. The majority of banking sector companies, along with blue-chip stocks, saw price gains across the board, significantly uplifting the index. HNB, COMB, SAMP, LOLC and LIOC emerged as the top positive contributors to the index. Additionally, almost every sector experienced price gains across the board. Subsequently, ASPI halted the session at 11,660 gaining 326 points, reaching a 2-month high.  Amidst the improved participation from HNW investors, turnover reached nearly a 2-month high and marked over a 271.6% increase from the monthly average. 

NDB Securities said high net worth and institutional investor participation was noted in Commercial Bank, Hatton National Bank, Sampath Bank. Mixed interest was observed in John Keells Holdings, Browns Investments and LOLC Finance whilst retail interest was noted in Industrial Asphalts, Marawila Resorts and Softlogic Capital. 

The Banking sector was the top contributor to the market turnover (due to Hatton National Bank, Commercial Bank, Sampath Bank and Pan Asia Banking Corporation) whilst the sector index gained 5.00%. The share price of Hatton National Bank increased by Rs. 12.75 to Rs. 190.25. The share price of Commercial Bank gained Rs. 5.60 to Rs. 99.60. The share price of Sampath Bank moved up by Rs. 2.40 to Rs. 77.40. The share price of Pan Asia Banking Corporation appreciated by Rs. 1.70 to Rs. 21.90.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings) whilst the sector index increased by 1.76%. The share price of John Keells Holdings recorded a gain of Rs. 2.25 to Rs. 171.25.