Stock market remains positive with continuous net foreign inflows

Saturday, 3 September 2022 00:14 - - {{hitsCtrl.values.hits}}

The Colombo stock market remained positive and closed on the up yesterday and for the week whilst net foreign inflow continued.

During the week, the ASPI and the S&P SL20 gained 5.9% and 5.1% respectively whilst recording an average daily turnover of Rs. 3.12 billion.

Yesterday the indices closed in green for a fourth consecutive session on with the ASPI gaining 61 points (+0.7%) on the back of price increases in LOFC (+18.7%), SFCL (+22.0%), BIL (+6.5%), and LOLC (+3.1%) Asia Securities said.

However, the S&P SL20 index closed only marginally higher (+4 points or +0.1%) dragged by price losses in EXPO (-0.7%), HAYL (-3.0%), DIAL (-2.3%), SAMP (-3.5%), and AAIC (-2.7%).

Turnover remained above Rs. 4 billion for a third straight session, led by EXPO (Rs. 852 million), SPEN (Rs. 697 million), and LIOC (Rs. 431 million).

Foreigners continued on the buying side, generating a net inflow of Rs. 526 million boosted by net buying in EXPO (Rs. 599 million).

Earlier, the ASPI witnessed a volatile opening to the session, staging a 91-point (+1.0%) gap-up before reversing to the downside in the next few minutes. After hitting an intra-day low of 9,250 (-5 points), the index regained momentum to reach a high of 9,342 (+87 points or +0.9%), however witnessed another gradual decline later in the day due to mild-profit taking ahead of the weekend.

The ASPI eventually closed at 9,316 (+61 points or +0.7%) and the S&P SL20 settled at 3,010 (+4 points or +0.1%). LOFC and SFCL ended as the biggest index movers, contributing 14 points each to the index, followed by BIL (+11 points), and LOLC (+9 points). However, the breadth of the market ended on the negative side with 97 price gainers and 110 decliners.

First Capital said the ASPI continued the positive sentiment for the fourth straight session as investor sentiment was upheld despite slight profit booking on selected plantation and transportation sector shares.

The Index surged by over 100 points as the market opened but declined steeply few minutes after. Subsequently index see-sawed from red to green with significant volatility while buying interest dominated in the hotel sector counters and export-oriented counters before closing for the day at 9,316 gaining 62 points.

Turnover continued to remain healthy at Rs. 4.2 billion (+16% cf. monthly average turnover of Rs. 3.6 billion) led by a 21% contribution from the Capital Goods sector while Transportation and Food, Beverage and Tobacco sectors equally contributed 20% each to the overall turnover.