Stock market rally persists; ends week on a high

• Turnover at Rs. 6.3 b highest in over 6 months; ASPI posts highest single-day gain in 3 months and crosses 9,000-point level
• LIOC, Hayleys, Richard Pieris, LOLC, Expolanka and Melstacorp dominate trading and gains

The rally at the Colombo stock market persisted with greater vigour yesterday with turnover hitting over a six-month high and ending the week on a high. For the week, the benchmark All Share Price Index (ASPI) gained 694 points (8.3%) and the active S&P SL20 by 344 points +12.6%). In the previous week ASPI and the S&P SL20 gained 8% and 11% respectively.

Daily turnover averaged Rs. 4.9 billion improving significantly from Rs. 2.9 billion in the previous week.

Asia Securities said the market yesterday continued its buoyant momentum with the indices gaining steadily throughout the session.

The ASPI reclaimed the 9,000 level, which it dipped below in March 2022, on the back of sharp price increases in LIOC (contributing +36 index points), HAYL (+32 points), RICH (+30 points), LOLC (+27 points) and MELS (+24 points).

The session also marked the ASPI’s highest single-day gain in almost 3 months. In a week of significantly improved activity, turnover reached a new high of Rs. 6.3 billion with strong participation by retail and HNI investors. 

Amid the overall pick up in volumes, contribution from LIOC and EXPO, which have dominated activity recently, declined to 34.6% of turnover. The market continued to build on the momentum seen across sectors with notable volumes recorded in HAYL, JKH, MELS, DIPD and ACL amid strong price gains. Market breadth was positive with 140 counters gaining and 90 declining.

Asia also said foreigners recorded a net outflow of Rs. 155.1 million while their participation increased to 7.8% of turnover (previous day 5.5%). Net foreign buying topped in JKH at Rs. 66.7 million and selling topped in MELS at Rs. 179 million.

First Capital said bourse traded positively throughout the session, hoisting the daily turnover to a nearly six-and-a-half month high while proving beyond doubt the turnaround rally on equities over fixed income amidst the growing uncertainties on the debt restructuring. 

Bullish HNWIs and retailers pushed ASPI to surpass the psychological barrier of 9,000 marks and posted the highest intraday gain of 321 points since May 2022. Index closed at 9,027 generating Rs. 6.3 billion of turnover which settled well above the monthly average turnover of Rs. 1.9 billion. 

Energy sector driven by LIOC dominated the turnover with a contribution of 23.0% while the Food, Beverage and Tobacco sector driven by plantations and the Capital Goods sector contributed 22.0% and 21.0%, respectively.

NDB Securities said high net worth and institutional investor participation was noted in Melstacorp, John Keells Holdings and Kahawatte Plantations. Mixed interest was observed in Lanka IOC, Expolanka Holdings and Hayleys whilst retail interest was noted in Browns Investments, LOLC Finance and Asia Siyaka Commodities.

Energy sector was the top contributor to the market turnover (due to Lanka IOC) whilst the sector index gained 17.02%. The share price of Lanka IOC increased by Rs. 27.75 (19.17%) to close at Rs. 172.50.

Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Melstacorp) whilst the sector index increased by 5.17%. The share price of Melstacorp moved up by Rs. 5.10 (10.26%) to close at Rs. 54.80.

Expolanka Holdings, John Keells Holdings and Hayleys were also included among the top turnover contributors. The share price of Expolanka Holdings gained Rs. 8.50 (3.89%) to close at Rs. 227.25. The share price of John Keells Holdings recorded a gain of Rs. 4.50 (3.69%) to close at Rs. 126.50. The share price of Hayleys appreciated by Rs. 11.75 (11.06%) to close at Rs. 118.

Separately Distilleries announced its interim dividend of 50 cents per share.