Stock market produces highest day gain though closing week in red 

The Colombo stock market produced a strong rally in sentiments yesterday though early losses saw a negative close for the week. 

The All-Share Price Index gained by 2% or 252 points whilst the S&P SL20 shot up by 3% or 124 points. 

For the week the ASPI lost 302.80 points (2.37%) while the S&P SL20 declined 114.34 points (2.64%). Until Thursday, the ASPI was down by over 4% since last week. 

Turnover however was a low Rs. 3 billion involving only 95 million shares. For the week turnover averaged Rs. 4.6 billion down from Rs. 8 billion last week. 

Asia Securities said the market ended the week on a strong footing with the key indices recording their biggest single-day gains in five weeks, gaining more than 2% each boosted by LOLC (+7.6%), SUN (+9.5%), ACL (+6.1%), EXPO (+5.0%), RCL (+5.8%), HAYL (+2.9%) and VONE (+5.4%). 

However, overall activity was witnessed at relatively lower levels as retail and HNI investors maintained a more cautious approach ahead of the weekend. Turnover was led by EXPO (Rs. 392 million), BIL (Rs. 220 million) and SUN (Rs. 201 million). 

“The ASPI opened trading on an upbeat note with a gap-up of 73 points at 12,280 and surged to 12,455 (+248 points) in early trade. Following a downtick to 12,367, the index continued its buoyant momentum and touched an intra-day high of 12,492 (+285 points) before settling at 12,460 (+252 points). The breadth of the market ended strong with price gainers outnumbering decliners by a wide margin of 150 to 33,” Asia added. 

It also said foreigners recorded a net outflow of Rs. 39 million while their participation increased marginally to 2.3% of turnover (previous day 2.0%). Net foreign buying topped in HAYL at Rs. 12.7 million and selling topped in VFIN at Rs. 27.7 million. 

First Capital said the bourse displayed a continuous recovery for the second consecutive day while recording a nearly 1-month high gain of 252 points. However, turnover recorded was lowest in the week mainly led by the decline in the number of trades to 33,095. 

“Market displayed a complete bull run throughout the session where ASPI recovered nearly 55% of the first three days of the week’s losses during yesterday and today. Index moved on a gradual uptrend and closed the week on a positive note at 12,460, gaining 252 points during the day,” said First Capital adding turnover was led by Capital Goods and Food, Beverage and Tobacco sectors’ joint contribution of 49%. 

NDB Securities said indices closed in green as a result of price gains in counters such as LOLC Holdings, Expolanka Holdings and Royal Ceramics. It said high net worth and institutional investor participation was noted in Royal Ceramics, Softlogic Holdings and Lanka IOC. Mixed interest was observed in Expolanka Holdings, Sunshine Holdings and ACL Cables whilst retail interest was noted in Browns Investments, Industrial Asphalts and SMB Leasing. 

The Capital Goods sector was the top contributor to the market turnover (due to ACL Cables and Vallibel One) whilst the sector index gained 2.32%. The share price of ACL Cables recorded a gain of Rs. 6.75 (%) to close at Rs. 116.75. The share price of Vallibel One appreciated by Rs. 4.20 (%) to close at Rs. 81.80. 

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments and Sunshine Holdings) whilst the sector index increased by 1.64%. The share price of Browns Investments gained 30 cents to close at Rs. 14.60. The share price of Sunshine Holdings moved up by Rs. 4.70 to close at Rs. 54.40. Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings increased by Rs. 16 to close at Rs. 334. Separately Dialog Axiata, C.M. Holdings and B.P.P.L. Holdings announced their interim dividends of Rs. 1.24, Rs. 5 and 24 cents per share respectively.