Stock market remains buoyant

The Colombo stock market remained buoyant with healthy turnover and gains in indices, though small in comparison to recent sessions. 

The All Share Price Index gained by 20 points, or 0.2%, and the S&P SL20 rose by 36 points, or 1%. Turnover was Rs. 5 billion involving 194.5 million shares.

Asia Securities said the ASPI managed to end in positive territory for the eighth straight session after overcoming a bout of volatility during the early hours triggered by price declines in index-heavy EXPO, BIL and LOLC, while the more liquid S&P SL20 index was robust owing to price increases in RCL, HNB and RICH. 

It said turnover, though, was low compared to Tuesday, but well above the MTD average of Rs. 4 billion as investor sentiment remained optimistic on stronger-than-expected earnings season.

 Renewed foreign buying interest was observed in RCL while foreign selling in DIST via block trades was absorbed by local retail and HNI investors. 

“Following a 37-point gap up, the ASPI declined to an intra-day low of 10,076 (-51 points) minutes after market opened today and witnessed an immediate sharp pickup of 104 points to an intra-day high of 10,180 level. Subsequently, the index recorded another sideways movement during mid- session followed by a period of stabilisation in closing hours before settling at a new record high of 10,147 (+20 points),” Asia said. 

Market breadth continued positive with 106 price gainers and 86 decliners.

It said foreigners recorded a net outflow of Rs. 154.5 million while their participation increased to 4.5% of turnover (previous day 1.5%). Net foreign buying topped in RCL at Rs. 72.5 million and net selling topped in DIST at Rs. 201 million. 

First Capital said the bourse finished strongly in the green territory, following the continuous upward momentum for eight consecutive days, while recording a one-and-a-half-week low marginal intraday gain. 

“During the initial 30 minutes, the index dropped by 55 points and eventually spiked to an all-time intraday high of 10,185. The market witnessed significant volatility throughout the session but managed to hold the uptrend grip and closed for the day at 10,147,” First Capital added.

It said turnover was led by the Food, Beverage and Tobacco sector, followed by the Capital Goods sector, accounting for a joint contribution of 48%. 

NSB Securities said the ASPI closed in green as a result of price gains in counters such as Commercial Leasing and Finance, Hatton National Bank and Royal Ceramics.

It said high net worth and institutional investor participation was noted in Distilleries. Mixed interest was observed in Expolanka Holdings, Royal Ceramics and ACL Cables, whilst retail interest was noted in Browns Investments, Kotagala Plantations and SMB Leasing non-voting. 

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments and Distilleries), whilst the sector index lost 0.65%. The share price of Browns Investments lost Rs. 0.30 (2.61%) to close at Rs. 11.20. The share price of Distilleries declined by 10 cents (0.55%) to close at Rs. 18.10.

The Capital Goods sector was the second highest contributor to the market turnover (due to Royal Ceramics and ACL Cables), whilst the sector index increased by 0.79%. The share price of Royal Ceramics moved up by Rs. 2.70 (4.99%) to close at Rs. 56.80. The share price of ACL Cables recorded a loss of Rs 1.40 (2.08%) to close at Rs. 66.

Expolanka Holdings was also included amongst the top turnover contributors. The share price of Expolanka Holdings decreased by Rs. 4 (1.79%) to close at Rs. 219.

Separately, ACL Plastics announced a final dividend of Rs. 1.