Stock market sustains 2022 opening positivity

The Colombo stock market sustained its 2022 opening positivity for the second consecutive day despite mid-day profit-taking amidst high turnover.

The All Share Price Index gained by 1.38% or over 174 points to close at 12,800 points, whilst the S&P SL20 improved by over 33 points or 0.78%. Turnover was Rs. 10.8 billion involving 806.3 million shares.

Though enjoying a modest-yet-welcome net foreign inflow of Rs. 13 million on 2022 opening, the market saw a net foreign outflow of Rs. 596 million.

Asia Securities said the market continued its buoyant New Year momentum boosted by LOLC, LOFC and NIFL, while real-estate stocks OSEA and PLR also witnessed higher activity during the session and ended with sharp gains on renewed buying sentiments.

Turnover touched a one-month high led by LOFC (Rs. 1.76 billion), BIL (Rs. 778 million) and PLR (Rs. 622 million).

“After marking a record single-day gain on Monday, the ASPI commenced the session moving range-bound in early trade, however turned upbeat in the second half the session, led by strong retail and HNI buying across sectors. The breadth of the market continued positive with 132 price gainers and 94 decliners,” Asia added.

It said foreigners recorded a net outflow of Rs. 596.1 million while their participation increased to 3.8% of turnover (previous day 1.2%). Net foreign buying topped in TJL at Rs. 23 million and selling topped in NDB at Rs. 469.5 million.

First Capital said the bourse finished off in the green for the second trading session of the New Year as optimistic investors continued their bull run while recording a healthy turnover.

“Shortly after the market opened, index witnessed a short-lived dip but recouped and moved on an upward trajectory mostly driven by high retail participation. However, during the final half hour of the session, index slightly edged down but managed to uphold the positive momentum,” First Capital added.

It said specific counters of LOLC Group contributed largely to the ASPI rise. Turnover was led by a joint contribution of 49% from the Diversified Financials sector and the Food, Beverage and Tobacco sector.

NDB Securities said high net worth and institutional investor participation was noted in National Development Bank, Sampath Bank and Asia Siyaka Commodities. Mixed interest was observed in Lanka Orix Finance, Browns Investments and Prime Lands Residencies, whilst retail interest was noted in Industrial Asphalts, Tess Agro and SMB Leasing non-voting.

The Diversified Financials sector was the top contributor to the market turnover (due to Lanka Orix Finance), whilst the sector index gained 5.09%. The share price of Lanka Orix Finance increased by Rs. 3.40 (12.69%) to close at Rs. 30.20.

The 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 0.13%. The share price of Browns Investments lost 20 cents (1.15%) to close at Rs. 17.20. The share price of Sunshine Holdings appreciated by Rs. 8.80 (17.96%) to close at Rs. 57.80.

Prime Lands Residencies and National Development Bank were also included amongst the top turnover contributors. The share price of Prime Lands Residencies moved up by Rs. 1.60 (12.90%) to close at Rs. 14. The share price of National Development Bank recorded a gain of 40 cents (0.58%) to close at Rs. 69.50.