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The Colombo stock market sustained its new found bullish sentiment with both indices up sharply on higher turnover reflecting early signs of a turnaround after having languished 40% down year to date last month.
The active S&P SL20 gained by 3.37% and the benchmark ASPI by 2.18%. Turnover amounted to Rs. 2.67 billion involving 123.5 million shares.
In the first three days of August, the value of the market has risen by nearly Rs. 190 billion to Rs. 3.507 trillion. Year to date, the ASPI however is down 34% and S&P SL20 by 39%.
Asia Securities said the indices rallied for a second session on Wednesday boosted by price gains in EXPO (+10.0%), LOLC (+8.0%), LOFC (+16.9%), RCL (+7.7%), HAYL (+4.7%), and VONE (+6.6%) as investors repositioned themselves in front-line stocks on the back of improving buying sentiment in the market.
Both the indices saw their biggest single-day gain in more than two weeks with the ASPI picking up 173 points (+2.2%) and the S&P SL20 index rising 84 points (+3.4%) for the day. More importantly, the ASPI reclaimed the 8,000-point level and closed out at a two month high at 8,080.
The biggest index mover, EXPO contributed 33 points to the ASPI, followed by LOLC (+21 points), LOFC (+11.5 points), and HAYL (+10.5 points).
As the recent positive turnaround in the market continues, the ASPI has gained around 453 points over the last four sessions (312 points in the last two sessions) while the S&P SL20 index has gained 177 points (141 points in the last two sessions).
Marking an upward trend, turnover came in at Rs. 2,677 million (previous session Rs. 2,383), significantly higher from a three-month moving average of Rs. 1,330 million. EXPO generated the highest turnover for the day (Rs. 601 million) while LIOC (Rs. 268 million), ACL (Rs. 202 million), and JKH (Rs. 194 million) witnessed healthy level of retail and HNI buying. The breadth of the market remained strong with price gainers 139 outnumbering 69 decliners.
First Capital said the ASPI closed above the 8,000 psychological level for the first time in two months as buoyant sentiment persisted in the market for the fifth straight session. Investor confidence swelled with expectations on situations normalising as the Government has temporarily facilitated the availability of basic necessities.
Index opened on an upbeat note and continued to soar high throughout with significant interest in dollar earning companies and closed for the day at 8,080 gaining 173 points. Gradual rise in volumes coupled with heavy retail participation resulted in a hefty turnover. Capital goods sector led the overall turnover by 25% followed by a 22% contribution from the Transportation sector.
NDB Securities said high net worth and institutional investor participation was noted in John Keells Holdings, CIC Holdings. Mixed interest was observed in Expolanka Holdings, Lanka IOC and ACL Cables whilst retail interest was noted in LOLC Finance, Browns Investments and SMB Leasing.
Capital Goods sector was the top contributor to the market turnover (due to ACL Cables and John Keells Holdings) whilst the sector index gained 2.15%. The share price of ACL Cables moved up by Rs. 5.50 (13.13%) to close at Rs. 47.40. The share price of John Keells Holdings recorded a loss of 25 cents to close at Rs. 119.25.
Transportation sector was the second highest contributor to the market turnover (due to Expolanka Holdings) whilst the sector index increased by 10%. The share price of Expolanka Holdings increased by Rs. 17.50 (10.01%) to close at Rs. 192.25.
Lanka IOC and LOLC Finance were also included amongst the top turnover contributors. The share price of Lanka IOC lost 60 cents to close at Rs. 99.10. The share price of LOLC Finance appreciated by Rs. 1.20 (16.90%) to close at Rs. 8.30.
