• Turnover hits 3-week high of Rs. 4.3 b; investors react positively to likely relaxation of curfew
• Demand persists for Expolanka, with Rs. 560 m turnover with gain in share price

The Colombo stock market broke through the psychological barrier of 6,000 points of the ASPI yesterday, thanks to strong performance aided by new high turnover. 

The All Share Price Index gained by 1.6% or near 100 points to close at 6,004 points whilst the S&PSL20 Index gained by 1.3% or close to 30 points. Turnover was a multiple-week high of Rs. 4.28 billion.

LOLC (up 7% or Rs. 8.80 to close at Rs. 135) topped the list of contributors to ASPI’s gain followed by Dipped Products, Dialog, Hayleys and Browns Investments. An interesting development was a host of Hayleys Group companies recording sharp gains (see box story).

The crossing of the 6,000-point level was desired after the ASPI slipped from that point on 2 October following the outbreak of the second wave of COVID-19. The highest level of the ASPI recorded this year so far is 6,129 on 3 January and year-to-date it is down 2%.

First Capital said the bourse transcended the 6,000 psychological level once again after a month on the back of robust investor confidence due to exceptional earnings in selective counters. 

“The index experienced a continuous uptrend since the beginning of the session and closed at 6,004 with an advance of 98 points,” it added.

Materials sector counters led the three-week high turnover followed by the Capital Goods sector, making a joint contribution of 53%.

Asia Securities said the indices saw strong gains with the ASPI surpassing the 6,000 mark as investors took more confidence in President Gotabaya Rajapaksa’s statement dismissing any likelihood of an island-wide lockdown. 

Activity was mainly dominated by HNI interest in the manufacturing sector, however retail activity remained strong too.

NDB Securities said high net worth and institutional investor participation was noted in Dipped Products, Hayleys and Haycarb. Mixed interest was observed in Expolanka Holdings, Tokyo Cement Company voting and non-voting, whilst retail interest was noted in Browns Investments, Piramal Glass and Vallibel Power Erathna. 

Materials sector was the top contributor to the market turnover (due to Dipped Products and Haycarb), whilst the sector index gained 6.09%. The share price of Dipped Products increased by Rs. 62 (18.87%) to close at Rs. 390.50. The share price of Haycarb appreciated by Rs. 82.50 (21.74%) to close at Rs. 461.90.

Capital Goods sector was the second highest contributor to the market turnover (due to Hayleys), whilst the sector index increased by 3.19%. The share price of Hayleys moved up by Rs 43.20 (12.89%) to close at Rs 378.40.

Expolanka Holdings and Browns Investments were also included amongst the top turnover contributors.

Furthermore, the share price of Expolanka Holdings gained Rs. 0.90 (3.75%) to close at Rs. 24.90, whilst the share price of Browns Investments recorded a gain of Rs. 0.20 (8.33%) to close at Rs. 2.60.

Foreign selling continued after YTD figure crossed the Rs. 46 billion mark and added Rs. 309 million more to the total.

Shares in Hayleys companies surges ahead at Colombo Bourse

SLIC picks up 8% stake in Vallibel Power Erathna